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NZD/USD Falters Amid Demand For USD

NZD

NZD/USD pulled back from its best levels since mid-2018 on Thursday as participants flocked to the greenback. Reported unwinding of USD shorts, rally in U.S. Tsy yields and firmer USD/CNH spilled over into NZD/USD, dragging the rate lower.

  • The rate has corrected Thursday's move and last operates at $0.7265, 10 pips better off. Bulls have Jan 6 high of $0.7315 in sight and look for a breach of that level, before targeting Apr 13, 2018 high of $0.7395. On the flip side, a dip through Jan 7 low of $0.7225 would expose Jan 4 low of $0.7153.
  • NZ watchers await the release of next Thursday's building permits & next Friday's food price index.

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