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Holding Below $0.58 Handle

NZD

NZD/USD prints $0.5790/95, ~0.6% lower today.

  • Kiwi is holding close to session lows with losses extending after a softer than forecast Chinese Caixin PMI. Pressure was seen early in today's session after the Q3 employment report. Employment decreased 0.2% q/q in 3Q while economists estimated an increase of 0.4%.
  • Technically NZD/USD remains in a downtrend, support comes in at $0.5770 the YTD low, a break opens $0.5623 a Fibonacci projection. Bulls first target $0.5867, the 20-Day EMA, to turn the tide.
  • AUD/NZD is firmer and sits a touch off the top of the recent range. The cross is ~0.4% higher at $1.0915/20.
  • RBNZ's Hawkesby noted this morning (BBG) that the economic system can cope with much higher jobless rates, bank stress test assumed a 9-10% jobless rate.
  • Looking ahead the data docket is empty until next Monday.

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