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NZD/USD Continues To Operate Near Multi-Month Highs

KIWI

NZD/USD swung in tandem with AUD/USD yesterday. The rate faltered early on, as final ANZ Biz. Conf. was revised lower, suggesting that the post-lockdown recovery is topping out, while the Australian state of Victoria declared a record increase in new Covid-19 cases. A negative lead from commodity mkts applied further pressure to the rate. NZD/USD recovered in U.S. hours, as U.S. Pres Trump floated the idea of delaying the presidential elections, while the U.S. reported horrific GDP figures, which knocked the greenback on its head.

  • RBNZ Dep Gov Bascand gave a speech this morning. In the Q&A he noted that the central bank will give an update on its bank capital plans in Q4.
  • ANZ Consumer Confidence, released earlier today, edged down to 104.5 from 104.3 this month, in another signal that the recovery in sentiment may be running out of steam.
  • NZD/USD sits at $0.6695, 5 pips shy of neutral levels. A break above Jul 28 high of $0.6703 would open up Dec 31, 2019 high of $0.6756. Bears keep an eye on Jul 24 low of $0.6615.
  • The main points of note on next week's NZ docket are domestic labour mkt report (Wednesday) and 2-year inflation expectation (Thursday).

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