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NZD Softens Amid Broader Caution, New Zealand Observes Public Holiday

KIWI

NZD/USD started on a softer footing, as aforementioned risk-off catalysts have kept a lid on the pair, while liquidity has been sapped by the Labour Day holiday in New Zealand. Risk aversion has been linked to the combination of worrying coronavirus situation in the U.S. & Europe, as well as some pessimistic notes re: U.S. fiscal deal in the latest comments from House Speaker Pelosi & White House's Meadows.

  • The rate sits -10 pips at $0.6682. A break under Oct 20/8 lows of $0.6553/47 would open up Sep 24 low of $0.6512. Conversely, a jump above Oct 23 high of $0.6705 would turn focus to Sep 18 high of $0.6798.
  • Looking ahead, New Zealand's trade data comes out tomorrow, final ANZ Business Confidence is due Thursday, while ANZ Consumer Confidence hits the wires on Friday.

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