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Free AccessNZD/USD Sits Just Above Recent Lows, Tracking At 0.6050
NZD/USD sits back at 0.6050 currently, little change versus NY closing levels from Friday. Early morning highs came in just above 0.6070, as US leaders announced a tentative debt deal over the weekend, although it still has to pass both parts of the US congress ahead of the Treasury running out of cash.
- NZD/USD lost 0.20% for Friday's session, unable to test back above 0.6100, while lows were around 0.6030/35 region. The currency was off 3.7% last week, amid the RBNZ peak rates call and rising US Fed tightening expectations.
- From recent highs the 2yr NZ-US swap spread differential has widened over 60bps, last near +66bps (recent highs come in above +125bps).
- Elsewhere in the cross asset space, equity sentiment was much better on Friday, with US and EU stocks up comfortably over 1%. This didn't impart much positivity for NZD though. Likewise for higher aggregate commodity indices. This likely weighed on NZD relative to AUD, with the AUD/NZD cross now back close to 1.0800 (last 1.0775/80).
- The NZ data calendar is quiet today, which will leave focus on broader risk appetite post the debt ceiling news as a key driver for NZD.
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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.