Outperforms, Trans-Tasman Flows In Focus

NZD/USD prints $0.6317, little changed in yesterday's trading, only safe haven CHF was a stronger performer in the G-10 space.

• The pair firmed through the European session finding resistance above $0.6350. The pair was offered in early NY trading before finding support at $0.6310 level, Kiwi got a brief respite as the 30 minute period before the WMR fix saw USD offered across the board. Following this brief rally, NZD/USD again retested the lower bound of its range before recovering to current levels.
• AUD/NZD printed its lowest level since December 2021, unable to hold post RBA gains from yesterday. The pair topped out near 1.0660 late in the Asia session yesterday. NZD bulls will look to break the bear channel the pair has been in since late September to target December lows at NZ$1.0349.
• US equities fell amid economic warnings from bank chiefs, with hiring slowdowns and pay cuts mooted. The S&P500 fell ~1.4% and DXY rose ~0.3%.
• Technically, bulls look to target the high from 12 Aug at $0.6468, a break through there would open the way to the high from 3 June at $0.6576. Bears need to breach the 200-day EMA at $0.6241 to re-establish the downtrend.
• The domestic data calendar is empty. Across the Tasman, Q3 Australian GDP figures are released, this could leave AUD/NZD derived flows in the driving seat if there is any meaningful deviation from the expected Y/Y headline figure at 6.3% (0.7% is the Q/Q forecast).