Free Trial

Risk Aversion Clips Kiwi's Wings

KIWI

Wider risk aversion prompted NZD/USD to erase gains posted earlier on Thursday as ECB Pres Lagarde's remark that the ECB does not target the exchange rate knocked the DXY. Having topped out at $0.6709 in the wake of the ECB policy announcement, NZD/USD faltered amid a renewed slide in U.S. equity benchmarks.

  • REINZ released their house sales index this morning, it rose 24.8% Y/Y roughly maintaining last month's pace. In their commentary, REINZ pointed to an "astonishing recovery" of New Zealand's housing market, while Kiwibank said that the market made it through the second lockdown with "hardly a scratch".
  • NZD/USD sits just shy of neutral levels, last at $0.6649. Initial support seen at $0.6619, which represents the 50-DMA. Below there would bring Aug 20 low of $0.6489 into view. Conversely, a jump above Sep 4 high of $0.6735 would clear the way to Sep 2/Jul 19, 2019 highs of $0.6789/91.
  • BusinessNZ M'fing PMI & food price index headline NZ economic docket today.
  • Next week, focus turns to Westpac Consumer Confidence (Tuesday), BoP current account balance (Wednesday) and GDP (Thursday).

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.