Weighed By Equity Risk Off After Getting Close To 0.6300

NZD/USD faltered late in NY trade on Wednesday. From fresh cyclical highs close to 0.6300 we pulled back to 0.6250/55 by the close, which is where we track in early Thursday trade. This left NZD 0.30% weaker for the session, around mid-range from a relative G10 stand point.

• A late slump in US equity indices headlined the US session, with S&P declines accelerating into the close for the largest decline since late September (SPX -1.47%, Nasdaq -1.5%).
• It appeared to start with program selling/late profit taking that then saw momentum pick-up with spillover to broader FI and FX.
• Core yields were weaker across the board the 10yr US Tsy finished at 3.85% (-8bps). This provided little relief to NZD though, with NZD/JPY back to 89.70/75 (-0.53%), due to risk off equity flows.
• For NZD/USD we are still some distance from downside support points, the 20-day EMA is back at 0.6153.
• The local data calendar is now empty until the new year, leaving NZD at the whim of broader risk appetite flows.