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NZD/USD Pushes Back Above 0.6000, As US Yields Slip On Fedspeak

NZD

NZD/USD stayed on the back foot post the Asia close, before finding support at 0.5985 and rebounding late in NY trade. The pair finished the NY session around 0.6020, still 0.36% weaker for Wednesday's session. We sit slightly weaker in the first part of trade today, last around 0.6015.

  • The NZD recovery was aided by softer USD sentiment, as two Fed members supported skipping a Fed June hike weighed on US yields. The 2yr finished close to 4.40%, down a further 5bps. The BBDXY is back to 1246, after touching fresh highs through 1250 intra-day on Wednesday.
  • Equity sentiment was weaker though, while commodity indices remained on the backfoot, likely limiting the NZD recovery to a degree. The currency was in the bottom half from G10 performance standpoint.
  • On the data front, we had house price data for May print post yesterday's onshore close. The y/y pace was at -10.2%, versus -10.3% prior. M/M we were -0.7%, with tentative signs that the worst of the house price decline momentum is now behind us. The local data calendar is quiet today.

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