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Pressured On Spillover From Australia CPI

NZD

NZD/USD prints at $0.6200/05, the pair is down ~0.3% today.

  • Spillover pressure from the AUD, in lieu of a softer than forecast Q2 CPI print, has seen the Kiwi move lower briefly dealing through yesterday's lows.
  • Support was seen ahead of $0.6180 and the pair has recovered to deal a touch above $0.62 handle.
  • AUD/NZD is ~0.3% lower, and sits below the $1.09 handle. The cross does remain well within recent ranges.
  • Westpac lowered the Fonterra Milk Price forecast for 2023-24 to $7.80/kg from $8.90. Chief catalyst for the revision is the ongoing sluggishness in the Chinese economy.
  • Cross asset wise; BBDXY is up ~0.2% as it pares yesterday's losses and US Tsy Yields are a touch firmer.
  • Wider swings in risk sentiment ahead of today's FOMC rate decision will be the main driver in NZD.

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