NZD/USD Falters, But Outperforms Majors Amid Broad USD Strength

NZD/USD is down from yesterday's highs above 0.5700, currently back at 0.5670. We dipped as far as 0.5650 overnight but found some support off this level. Whilst lower over the past 24 hours, the kiwi is still the second-best performer in the G10 space over this period, with only CAD faring better.

• The USD was stronger across the board, as yields rebounded strongly, the 10yr real yield hitting fresh cyclical highs at 1.72%. The backdrop from Fed commentary remained hawkish.
• This weighed on global equity markets, but losses were fairly modest, with the VIX only edging up modestly to 30.76%. NZD/JPY found some selling interest above 85.00 (last 84.95/00), but remains above all simple 50, 100 & 200 day MAs.
• AUD/NZD continues lower, but at a steady pace. The pair was last at 1.1060 (low overnight came in at 1.1053). There is some Australian data out today, most notably September employment figures. This could see some spill over to NZD.
• NZ's data calendar remains devoid of major releases until tomorrow's September trade figures print.