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Antipodeans sink while USD treads water – BBH

FXStreet (Barcelona) - The Brown Brothers Harriman Team notes that the main impetus for the fall in the New Zealand dollar today came from a downgrade in the RBNZ’s inflation expectations, while the fall in Aussie seems to be momentum-driven.

Key Quotes

“There are plenty of scattered events on the near-term time horizon to inject more volatility.”

“For the Australian dollar, momentum players appear to be selling the Aussie on the break of $0.8600, encouraged by the help of a sharp 3% drop in iron ore prices and more jawboning by officials. The Australian dollar has recorded new four-year lows today.”

“For its part, the New Zealand dollar has slipped through $0.7800. The multi-year low set earlier this month was near $0.7660. A retest seems likely next month.”

“The dollar is mostly stronger on the day. The Australian and New Zealand dollars are underperforming on the day, falling to $0.8550 and $0.7800, respectively.”

“The euro is little changed at $1.2440 and the pound is trading at $1.5670. The yen is the outperformer, with the dollar trading lower to just above ¥118.0.”

“In the EM space, KRW is outperforming while RUB and MXN are trading weaker against the dollar.”

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