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NZD Best G10 Performer, Orr States NZ Inflation Still Too High

NZD

NZD/USD finished top of the G10 ranking through Wednesday's session (+1.70%), just shading AUD's performing. The USD suffered broad based losses, down 1.1% for the DXY (0.90% for the BBDXY). NZD sits just under 0.5840 currently, with the 50-day EMA sitting at 0.5856. We haven't been above this resistance level since mid-August. The 20-day is back at 0.5720.

  • Earlier doors this morning is comments from RBNZ Governor Orr and Finance Minister Robertson. Neither official has deviated from recent comments. The Finance Minister is hopeful inflation has peaked, but Orr stated it is still too high in NZ, and while the central bank is well down the path of tightening policy it remains firmly focused on meeting its inflation target.
  • NZD likely saw some positive spill over from the large CNH gains seen overnight. USD/CNH has fallen more than 2% from yesterday's highs, dipping below 7.1900. EUR/USD is back above parity against the USD as well.
  • US yields were lower, 2yr down to 4.41%, -7bps, while the 10yr slipped 10bps to 4%. Core yields elsewhere were lower as well.
  • Equity sentiment was mixed, higher in the EU, but US markets were lower, led by tech softness.

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