NZD/USD Clears Simple 200-day MA

NZD/USD was close to the best performer in the G10 space, up 1.55% for Wednesday's session. We currently sit slightly below late NY session highs (0.6313, against last levels of 0.6295/00). NOK recorded similar gains, while AUD was not far behind.

• The USD was weaker across the board, as UST yields pulled back (2yr down 15bps to 4.32%) as US Chair Powell spoke and advocated a slower rate hike pace to balance risks.
• This spill over into equity markets, which rallied strongly, with the S&P500 up over 3%, while the VIX fell back to near 20.50%, from earlier session highs above 22.50%.
• NZD/JPY trended higher and is back close to 87.00 this morning.
• For NZD/USD, the simple 200-day MA has been cleared at 0.6292. If we can hold above this level, mid August highs around 0.6470 beckon. On the downside support should be evident between 0.6150-0.6200.
• There is no domestic data today, very late yesterday core logic house prices showed a -2.9% y/y fall for November, which is back to 2009 lows.