The choice facing currency traders when looking at the Australian and New Zealand Dollars at present is which one they dislike least. On Monday, the NZD took second prize in this ‘reverse beauty contest’ which meant the AUD/NZD cross edged slightly lower to 1.1092 after opening the week in Sydney around 1.1115. It does require a magnifying glass to see the movements clearly, though, and it would be a mistake to overinterpret the significance of 20 pips either way on this cross. NZD/USD just about managed to stay on a US 68 cents handle over the last 24 hours (it spent around 10 minutes in the 0.6790’s) but at no stage did it break above 0.6835. It remains below its 20, 50, 100 and 200 day moving averages and would need to trade above 0.6891 to get above its 20-day mark. The only economic data yesterday was BNZ’s Performance of Services Index. This fell 0.3 points to 55.6 from the previous month though the accompanying Press Release sought to put a positive spin on the drop, noting “these are robust results given the prevailing uncertainty surrounding the election, coalition negotiations, and government formation over the period.” For the moment, the FX market has given the NZD the benefit of the doubt though it is too early to be confident about calling the bottom of the market. NZD/USD needs to fall less than half a cent for some “fresh 2017 low” headlines to be written.