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Rally Loses Steam


The kiwi found poise Monday after PM Ardern confirmed that restrictions in Auckland will be relaxed further and signalled a "strong expectation" that New Zealand's largest city will exit lockdown by the end of this month. Meanwhile, the greenback lost ground as U.S. equity benchmarks eked out some gains. NZD/USD went bid as a result, adding 50 pips through the day.

  • That being said, the kiwi is showing some weakness this morning, with NZD/USD edging away from yesterday's highs. The rate last changes hands at $0.7161, down 6 pips.
  • Further losses past Nov 5 low/50-DMA at $0.7073/68 would shift focus to the 100-DMA, which intersects at $0.7027. On the topside, a jump above Oct 28/21 highs of $0.7217/19 would show that bulls are having the upper hand.
  • New Zealand's retail card spending surged 10.1% M/M in October, with Stats NZ noting that "spending is starting to return to levels seen before the country went into lockdown in the second half of August."
  • Looking further afield, flash ANZ Business Confidence will be published on Thursday, with BusinessNZ M'fing PMI coming up on Friday.

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