NZD extends decline
There’s a positive tone in equities but that doesn’t extend to commodity currencies. In truth, it’s been that kind of week: the correlations haven’t held up.
There is some broad US dollar buying flowing through the market but it’s particularly strong against the commodity currencies. NZD/USD is down 39 pips to 0.7163. It was up at 0.7210 four hours ago when the steady selling kicked off.
It’s a similar story in AUD and CAD which have both been on sale since London rolled in.
The NZD/USD chart took out the weekly low in the latest push and that leaves a bit of a support vacuum until the June low of 0.7126.