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Underperforms, AUD/NZD Looking To Maintain Break Above Downtrend Channel

NZD

NZD was an underperformer through Wednesday's session, dipping a further 0.75%. Only GBP dropped by more against the USD through the session. NZD/USD currently sits around 0.6300 currently. Lows in NY trading came in just under 0.6280.

  • The currency has slipped below uptrend channel support and is also back sub the 20-day EMA (0.6310). Underperformance against AUD was noticeable through yesterday's session and continued post the Asia close.
  • The AUD/NZD cross got to a high of 1.0671, before edging back to 1.0655/60 currently. This puts the cross above its 20-day EMA (1.0648), albeit just and threatening to maintain a break above the downtrend channel that has been evident since late September in the pair.
  • NZD likely saw some benefit from improved risk appetite in the equity space in EU/US trading (likely helping drag the currency off lows sub 0.6300), but this hasn't seen great follow through so far.
  • The local calendar is empty, which leaves broader risk swings and cross related flows likely to dominate.

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