It has been a slow start to the week with little newsflow. The market has reversed some of Friday night’s post US payrolls reaction, seeing a broadly weaker US dollar and lower Treasury yields. Overnight, the NZD and AUD have outperformed, trading over 0.63 and 0.70 respectively, and currently sitting just under those levels.
The NZD and AUD haven’t been adversely affected by China’s decision to extend its military exercises surrounding Taiwan, continuing training “under real war conditions”, as the People’s Liberation Army has described it. The NZD dipped a little after yesterday afternoon’s inflation expectations data but rallied up through 0.63 overnight and is currently settling around 0.6280, after a softer USD in the overnight market. At the moment, buying should be considered at .6280-.6300.
Current Level: 0.6285
Last Weeks Range: 0.6205-0.6305