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Equity markets closed higher on Friday as the S&P earnings season shifts focus from financials to the broader economy. The S&P 500 gained 0.4%, while the Euro Stoxx 50 rose 0.8%. In contrast, the FTSE 100 dipped 0.3%. US 10-year bond yields dropped by 1bps to 4.08%, with larger declines seen in European bonds.
On Friday night, only minor economic data was released. US housing starts declined by 0.5% in September, in line with expectations. Weakness in multi-family homes was offset by gains in single-family homes. Permits dropped by 2.9% after rising 4.6% previously, showing continued monthly volatility in the data. A better gauge is the 3-month and 6-month averages, which are up 0.7% and 1.5% respectively, indicating that the residential construction sector remains stable.
NZDUSD traded within a narrow range and ended the week around 0.6070, offering little excitement. A breakout seems likely soon. Given the current backdrop of wars and upcoming elections, market uncertainty remains high. However, once the US elections are over, more attention might shift back to the economy, which could drive the next major currency move. NZD is close to its low point, in the short term though, there may be opportunities to buy on dips. Support is at 0.6040 & 0.6000, with resistance at 0.6080 and 0.6120.
NZDAUD edged slightly higher to around 0.9055. Despite fundamentals suggesting the cross should be below 0.9000, it remains frustratingly steady. Interest rate dynamics, with NZD potentially having lower rates than AUD by the end of next month, could lead to some interesting decisions on carry trades towards year-end. For now, the pair remains within a range. Support is at 0.9040 & 0.9000, and resistance at 0.9070 & 0.9100.
NZDJPY is trading below 91.00, as the yen became the strongest performer among the major currencies. After briefly surpassing 150.00 on USDJPY, it ended the week closer to 149.50.
There’s nothing significant scheduled on today’s economic calendar.
Here are the latest mid-market rates:
| Currency Pair | Mid-market rate |
| NZD/USD | 0.6072 |
| NZD/AUD | 0.9050 |
| NZD/JPY | 90.89 |
| NZD/CNY | 4.3102 |
| NZD/EUR | 0.5583 |
| NZD/GBP | 0.4651 |
| NZD/HKD | 4.7052 |
| NZD/SGD | 0.7950 |
Chart of the Day 
