Kiwi Swings To Weekly Loss

Underwhelming Chinese Services PMI data and broader risk aversion applied selling pressure to NZD/USD on Thursday, prompting the pair to erase all of the prior day's gains on its way to a fresh two-year low. The rate probed the water under the $0.6428 mark as a result and formed a bearish outside bar pattern.

• NZD/USD last deals at $0.6425, a touch lower on the day, poised to finish the week in negative territory. Further losses past the $0.6385-77 area, which provided support in June 2020, would allow bears to target May 29, 2020 low of $0.6169. On the flip side, bulls look for a rebound above yesterday's high of $0.6568.
• As a result of a review of its monetary policy implementation framework, the RBNZ "will retain a floor system for monetary policy implementation, and does not intend to reintroduce credit tiers." The Reserve Bank stressed that its comments on the matter have "no implications for [its] monetary policy stance."
• With little of note on the local docket today, focus turns to next week's card spending data, inflation, inflation expectations, and BusinessNZ M'fing PMI.