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Weakness Persists

NZD

NZD/USD traded on a heavier note Tuesday, with some blaming trans-Tasman flows after the release of strong CPI data out of Australia. The pair clawed back some of its earlier losses late doors, as the spectre of Fed policy decision loomed large.

  • Sales at the start of this week took NZD/USD to fresh cycle lows, as the 38.2% retracement of the 2020 - 2021 rally at $0.6703 gave way. That level provided a firm layer of support on several occasions in December.
  • The rate has added a handful of pips and last operates at $0.6692. Bulls need to retake Jan 19 high of $0.6812 to breathe a sigh of relief. Conversely, a retreat under yesterday's low of $0.6660 would open up Nov 2, 2020 low of $0.6589.
  • New Zealand's credit card spending comes out later today, but the main focus this week will fall on quarterly CPI data, due tomorrow. Looking further afield, ANZ Consumer Confidence will be released on Friday.

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