In line with expectations, markets were subdued on Thursday due to the thanksgiving holiday in the USA. The NZD traded in a 30-pip range overnight, oscillating between 0.6790 to 0.6850 against a slightly weaker USD. The kiwi was the worst performer on the day as it failed to capitalise on a 0.2% drop in the USD index and the GBP surged after encouraging Brexit headlines. AUD/NZD also traded flat, firming around the 1.0650 handle.
With the Kiwi continuing to take its cues from developments in global risk sentiment and global equity prices, Kiwi traders will be keeping a close eye on political uncertainty in the UK as well as the dynamic US-China trade war situation. On the data front today we have Canadian CPI and a number of flash PMI’s for the Japanese, US and Euro economies. These are not expected to have a big influence on the Kiwi with next weeks New Zealand GDP and CPI releases due out.
Overnight moves have not affected our technical levels of consideration. On the downside, we still see the NZD/USD as being relatively well supported at 0.6700 level whilst on the upside we see moves meeting resistance at the 0.6890 handle.