NZD Up Off The Canvas

NZD/USD recovered from the sub 0.6150 dip, pushing back above 0.6200 into the NY close last week. We have opened with a slightly firmer tone this morning, tracking above 0.6210.

• NZD/USD finished last Friday down just over 2% for the week, as global risk appetite softened on growth/recession fears.
• Still, NZD/USD is around +1% above the sub 0.6150 lows from overnight on Friday.
• AUD/NZD softness is also helping the Kiwi in early trading today, with the pair back sub 1.1000 (last 1.0975). We are down around -0.25% so far in terms of the cross.
• Offshore drivers are likely to remain key for NZD this week. The data calendar has mainly second tier releases. Tomorrow delivers ANZ commodity prices for June and house price data for the same month.
• NZ Prime Minister Jacinda Ardern will be in Australia for the first part of this week, leading a trade delegation to the country.
• This comes after NZ secured a free-trade agreement with the EU, which was announced towards the end of last week. The aim of which is to allow NZ farmers access to EU agricultural markets, with an estimated NZ$1.8bn in annual export revenue growth to the EU likely as a result of the deal.