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Pressured, Consumer Confidence Rises

NZD

NZD/USD prints at $0.6480, ~0.4% softer in yesterday's trading.

  • After being unable to sustain a break of January highs NZD/USD was pressured as an offer in EUR/USD spilled over into wider USD strength. After raising interest rates 50bps ECB President Lagarde acknowledged disinflation in the economy which weighed on core FI yields.
  • NZD/USD found support at $0.6460, paring losses as a rally in US Equities boosted risk sentiment. Selling interest was seen above $0.65 and the pair retreated to current levels.
  • Cross asset flows were mixed, S&P500 was ~1% firmer and DXY was 0.5% firmer. US Treasury Yields were marginally lower, 10YY was down ~2bps.
  • On the wires this morning Jan Consumer Confidence rose 13% to 83.4, the prior reading was 73.8 which was the lowest reading on record.
  • Bulls look to sustain a break of $0.6538 to continue the uptrend. Bears look to break the 20-Day EMA at $0.6435 to turn the tide.

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