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Kiwi Trims Gains

NZD

Greenback weakness helped NZD/USD advance into the London morning Thursday, but the rate trimmed gains later in the day, as commodity-tied FX space took a hit from the news that China has released its national crude oil reserve to alleviate a surge in domestic energy costs.

  • New Zealand's parliament this week empowered the Government to spend up to NZ$41mn in addition to the amount allocated in this year's budget in response to the renewed outbreak of Covid-19.
  • Trade Me, New Zealand's most popular online auctions website, said that the average residential property asking price rose 20.5% Y/Y to a record NZ$846,900 in August.
  • New Zealand's card spending data will hit the wires shortly, before focus turns to next week's Q2 GDP report.
  • NZD/USD trades at $0.7107 as we type, little changed on the day. A clearance of Sep 3 high of $0.7170 would shift focus to the 61.8% retracement of the Feb 25 - Aug 20 sell-off at $0.7213. On the flip side, bears look for a dip through the 100-DMA/Sep 8 low at $0.7081/76, which would open up the 50-DMA at $0.7000.

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