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NZD/USD Eyeing 2022 Lows

NZD

NZD followed the broader USD trajectory and weakened post the Asia close. We dipped sub 0.6250 late in NY but currently sit slightly firmer at 0.6270.

  • NZD has seen only modest outperformance against higher beta plays since the start of the week. NZD/USD is down 1.60%, versus AUD's 1.75% dip and NOK, off more than 2%.
  • For NZD/USD, lows from mid-May just below 0.6220 are now in play. On the topside, we would expect to see some resistance around the 0.6350 region if seen.
  • Locally, NZ food prices rose 0.7% in May, up from the 0.1% pace in April. In YoY terms we are back up to 6.8%, which is not too far asway from highs earlier in the year (7.6%).
  • The RBNZ also stated that it received support for its liquidity policy review. The review launched in February 2022 aims to strengthen NZ's financial stability by lowering the likelihood of liquidity problems affecting the deposit takers that the RBNZ regulates.

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