NZD/USD Holds Above 0.5900

NZD/USD firmed somewhat post the Asia close on Wednesday. We couldn't get beyond 0.5925 in NY trade though, ending the session back in the 0.5910/15 region. This was a modest gain (+0.07%) and underperformed other parts of the G10 which saw more of a recovery against the USD.

• Yesterday's post RBNZ low near 0.5970 remains intact, beyond that lies early September lows near 0.5860. The 20-day EMA is at 0.5936 on the topside, while the 50-day is higher just under 0.5980.
• NZD saw some relief from pullback in US yields on Wednesday. The US 10yr back to 4.73%, amid mixed US data. US equity markets also firmed (SPX +0.81%), while the VIX closed back near 18.60%.
• NZD/USD looks too low relative to 2yr rate differentials with the US, although this spread has moved off recent highs post the RNBZ.
• On the data front today we have the September ANZ commodity price print.
• On the political front, the latest 1News/Verian poll is showing that there is a high probability that NZ will see a change of government following elections on October 14 (see this link for more details).