The New Zealand dollar remained largely range bound through trade on Tuesday bouncing between intraday lows at 0.6535 and session highs at 0.6570. Despite ongoing pressure on equities and US treasury yields, amid a heightened risk off environment, moves within currency markets have been largely modest. Traditional haven plays are seeing traction with the JPY and CHF finding support, however the contagion and fear that has plagued stocks appears not to have spread to currencies at this point.
With little macroeconomic data on hand we expect the NZD will remain range bound, responding to newswire headlines as risk sentiment continues to evolve. While well supported on moves approaching 0.6435 we expect upside momentum to be largely muted as pressure on commodities, led by oil, and the broader risk off tone weigh on investors appetite to drive the Kiwi higher and extend on recent moves toward 0.66.