Free Trial
BONDS

NZGBs Back The Other Way

NZD

Gains As Equity Rally Continues

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

NZD/USD Falters But Kiwi Outperforms Commodity-Tied Peers

NZD

A rebound in the broader U.S. dollar strength pulled the rug from under NZD/USD Tuesday, with the pair erasing its earlier gains as a result. Weaker commodity prices helped keep a lid on the likes of the kiwi dollar.

  • The greenback served as the main driver of NZD/USD price action, which is evidenced by strong correlation with swings in the BBDXY index.
  • The rebound in the U.S. dollar was facilitated by above-forecast Conf. Board Consumer Confidence and JOLTS data, which fanned hawkish Fed bets and sent U.S. Tsy yields higher.
  • Cross-asset signals were negative for the kiwi. Equity sentiment remained weak, with the VIX index creeping higher. The commodity complex also turned softer.
  • Still, the kiwi outperformed its commodity-linked G10 peers. AUD/NZD moved away sharply from recent cyclical highs, as Australia/NZ 2-Year swap spread widened.
  • NZD/USD last deals at $0.6133. A fall through Aug 29 low/round figure of $0.6102/00 would shift focus to Jul 14 cycle low of $0.6061. Bulls look for a recovery above the 50-DMA ($0.6238) before targeting Aug 12 high of $0.6468.
  • Building permits & ANZBO survey headline the local data docket today. China's official PMI figures will also provide interest.
188 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

A rebound in the broader U.S. dollar strength pulled the rug from under NZD/USD Tuesday, with the pair erasing its earlier gains as a result. Weaker commodity prices helped keep a lid on the likes of the kiwi dollar.

  • The greenback served as the main driver of NZD/USD price action, which is evidenced by strong correlation with swings in the BBDXY index.
  • The rebound in the U.S. dollar was facilitated by above-forecast Conf. Board Consumer Confidence and JOLTS data, which fanned hawkish Fed bets and sent U.S. Tsy yields higher.
  • Cross-asset signals were negative for the kiwi. Equity sentiment remained weak, with the VIX index creeping higher. The commodity complex also turned softer.
  • Still, the kiwi outperformed its commodity-linked G10 peers. AUD/NZD moved away sharply from recent cyclical highs, as Australia/NZ 2-Year swap spread widened.
  • NZD/USD last deals at $0.6133. A fall through Aug 29 low/round figure of $0.6102/00 would shift focus to Jul 14 cycle low of $0.6061. Bulls look for a recovery above the 50-DMA ($0.6238) before targeting Aug 12 high of $0.6468.
  • Building permits & ANZBO survey headline the local data docket today. China's official PMI figures will also provide interest.