Kiwi Gets Some Reprieve From Yen Intervention

Offshore catalysts were in the driving seat Thursday. While NZD/USD extended its losing streak to four consecutive days, intraday losses were marginal and the pair charted a virtual Doji candlestick, which indicated moderation in underlying downside momentum.

• The pair sold off initially as Wednesday's hawkish Fed decision was digested by other timezones. Selling pressure took NZD/USD close to $0.5800 before the Asia/Europe crossover brought a greenback-led rebound as the BoJ intervened in currency markets to prop up the yen.
• Risk sentiment remained negative, with equity benchmarks trading in the red, across the board. The aggregate BBG Commodity Index fell ~0.9%.
• Renewed buying interest in AUD/NZD emerged Wednesday and the pair printed new seven-year highs at NZ$1.1371, as Australia/New Zealand 2-Year swap spread jumped to its best levels this week.
• NZD/USD last deals at $0.5848, little changed on the day. From a technical standpoint, bears now look for losses past Mar 26, 2020 low of $0.5778, while bulls keep an eye on the $0.6000 mark. Note that the RSI is pointing to oversold conditions, sitting just shy of the threshold.
• Note that New Zealand's financial markets will be shut on Monday as the country observes a day of mourning to mark the death of Queen Elizabeth II.