The Kiwi Dollar came under pressure after a weak Fonterra auction and worse than expected employment data. In yesterday's NY session, NZD/USD declined from 0.6710 to 0.6650 and overnight, it extended lows to 0.6630. Key support is now seen at 0.6620 and a break below would pave the way for a 0.6480 test. Meanwhile, AUD/NZD continues to rally, being up now almost 300 pips since yesterday morning. Australian Retail Sales data arrived pretty much in line with expectations, so there was little reaction in the FX market. However, the rally in Asian stock markets gave the Aussie Dollar a boost and AUD/USD made it above 0.7220.
EUR/USD was quiet as usual in the Asian session, as it consolidated in a 1.0938-68 range. GBP/USD traded 1.5414-24. USD/JPY failed to benefit from the rise in equities. It rose to 121.40 after the Tokyo open, but ran out of momentum and fell back to 121.15. The Canadian Dollar got supported by the bounce in Oil prices and USD/CAD fell sharply in yesterday's NY session, from 1.3160 to a low of 1.3040. Overnight, there was a weak bounce to 1.3070, but it eventually fell back to 1.3045.
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