DALY SEES 'NO URGENCY TO ADJUST THE POLICY RATE'

MNI BRIEF: Fed’s Collins Sees Rate Cuts Later Than Had Thought

MNI BRIEF: China March M2 Slows More Than Expected

MNI BRIEF: China Tightens Stock Market Supervision

MNI BRIEF: China Mar Exports Jump On Demand; Imports Improve

MNI: PBOC Sets Yuan Parity Lower At 7.0967 Fri; -4.87% Y/Y

MNI: BAKER HUGHES US RIG COUNT 617; OIL RIGS 506; GAS RIGS 109

March Home Sales Jumped At End Of Month

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

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.
BulletMarketsForeign Exchange BulletsHomepage
BulletMarketsForeign Exchange BulletsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.