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NZD plumbs fresh lows ahead of RBNZ rate......>

FOREX
FOREX: NZD plumbs fresh lows ahead of RBNZ rate decision
-Comfortably the worst performer in G10 today was the NZD, slipping below $0.68
for the first time since December last year. Spot NZD/USD now sits just above
the $0.6781 support ahead of what's expected to be an unchanged RBNZ rate
decision.
-USD had another good session, but 95.529 for the dollar index remains the key
resistance before any further wave of strength. Datapoints and news were thin on
the ground today, but a narrowing trade deficit prompted a number of banks to
boost their Q2 GDP growth forecasts.
-The overarching USD strength played out well against GBP/USD and EUR/USD which
remain in touching distance to YTD lows ($1.3102 and $1.1509 respectively) - the
key support levels in both pairs for now. Elsewhere, oil-tied FX had another
strong day as weekly DoE inventories resulted in a WTI rally of over 3%, helping
underpin CAD and, to a lesser extent, AUD.
-RBNZ rate decision takes immediate focus Thursday, ahead of various EZ CPIs and
the tertiary US GDP reading.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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