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Kiwi Keeps Losing Altitude

NZD

NZD/USD extended losses past the $0.6300 mark on Tuesday despite a positive turnaround in risk sentiment. Offshore catalysts drew attention, with focus on the U.S. and China. Participants positioned ahead of Wednesday's U.S. CPI report and digested the latest round of Fedspeak centred around "expeditious" tightening. In China, mixed messaging from the country's top brass sowed confusion, as the nation pledged to stick to its Covid-Zero strategy despite lingering worry over its mounting economic costs.

  • The rate last trades flat at $0.6291. Losses past the 61.8% retracement of the 2020 - 2021 rally at $0.6232 would shift focus to May 29, 2020 low of $0.6169. Bulls would be pleased by a rebound above May 5 high of $0.6568.
  • Stuff published a source report noting that "the Government will bring forward the full reopening of the border to the end of July" from October. The formal announcement is expected later today.
  • Looking ahead, New Zealand's inflation expectations and BusinessNZ M'fing PMI are due Thursday and Friday respectively.

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