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Pressured After China's 5-Year LPR Held Steady

NZD

NZD/USD prints at $0.5910/15, the pair is ~0.2% lower on Monday.

  • Pressure has been seen on Kiwi after China held the 5-Year LPR steady at 4.20%, a cut of 15bps had been expected. The 1-Year LPR was cut 10 bps when a cut of 15bps was expected.
  • NZD/USD sits a touch above YTD lows, bears look to break the low from 17 Aug ($0.5903) which opens $0.5841 (low from 10 Nov 22) and $0.5783, a Fibonacci projection.
  • AUD/NZD is a touch firmer however the cross remains well within recent ranges.
  • Cross asset wise; E-minis are a touch firmer and the Hang Seng is down ~1.5%. 10 Year US Tsy Yields are ~2bps firmer.
  • A thin docket in Asia leaves wider swings in risk sentiment as the main driver in NZD.

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