Gains Capped At 0.6000, US Yield Rebound Weighs

NZD/USD struggled post the Asia close on Monday. Resistance around the 0.6000 level continued to hold and we pulled back towards 0.5960 by late in the NY session, which is where we currently track. This was an NZD loss of 0.60% against the USD, the worst performer in the G10 space in the session for Monday. The USD recovered some ground as US yields stabilized.

• The 100-day EMA is near 0.5990, which may be acting as a resistance point. NZD/USD couldn't break above this resistance level back in mid October. The 50-day EMA sits back near 0.5930.
• Broader FX sentiment was dominated by US yield swings. Tsy yields unwound Friday's post payroll losses, with one supporting factor less tight credit conditions reported by the SLOOS survey for Q3. The US 10yr finished back at 4.65%, +8bps.
• Equity sentiment was mixed, with US markets posting modest gains (SPX +0.18%), but EU markets were weaker. Commodity indices were mixed, the aggregate Bloomberg index down slightly (-0.22%), while metals rose 1.27%.
• The local data calendar is quiet today, although earlier data from Barfoot indicated that Auckland house prices rose 3% m/m in October.
• We do have the RBA decision later, so be mindful of spill over from that to the NZD.