NZD/USD Back Below 20-Day EMA

From highs early yesterday near 0.5800, NZD/USD retraced just over 2.3% to trade under 0.5660 overnight. The pair stabilized somewhat in late US trading, back now closer to the 0.5700 level. The 20-day EMA is not too far away from current spot at 0.5704, while dips into the 0.5650/0.5600 region have been supported in recent session.

• The Kiwi is still the second worst performer within the G10 space since the start of this week, only slightly outperforming the AUD.
• PMI reports were generally downbeat, raising global growth concerns, although broader risk signals from equities were positive in the US & EU sessions.
• China related assets continued to fall though. The China Golden Dragon Index slumped 14% in US trading, the biggest drop on record, while USD/CNH surged above 7.3200. This likely caused some negative spill over for NZD.
• NZ markets re-open today. Global yield moves were to the downside overnight, ex the US, particularly in the UK (2yr Gilt off 24bps).
• The NZ data calendar is quiet today, but Reserve Bank of New Zealand Chief Economist Paul Conway will speak at the CBA conference in Sydney online from Wellington (at 10:10am NZ time). There are no published speaking notes.