Key line of resistance for NZD
A snippet via BNZ on the Australian and New Zealand dollars overnight:
- there has been some small outperformance of commodity currencies
- The NZD … A key line of resistance is at 0.6450, which was the mid-September peak.
- AUD found some resistance at 0.6880
Also this on the central banks:
- Reduced global risks are seeing pricing for RBA and RBNZ rate cuts move towards the likelihood of less policy stimulus
- An RBA rate cut next month now looks highly unlikely, while a 25bps December cut is priced at an even chance.
- The NZ OIS market has moved from pricing more than a 25bps cut in November (a small chance of a cut as large as 50bps) to a slightly less than 25bps cut (a small chance that the RBNZ holds policy unchanged).