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Market Update 9/07/2024

Welcome to our daily market update, where we help keep you informed on the latest happenings in the world of FX.
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US equities stayed relatively stable as the market awaits the earnings season, monitors the US presidential race, and looks for clues on the Fed’s next moves. The yield on the US 10-year bond fell by 1bp to 4.27%. Meanwhile, the US dollar strengthened against all G10 currencies over the past 24 hours.
NZDUSD has underperformed and is slightly weaker, trading around 0.6130 due to a small increase in the DXY (Dollar Index) overnight. This week, the market is focused on New Zealand’s OCR announcement on Wednesday afternoon, accompanied by a monetary policy statement. No change is expected to the cash rate from 5.5%. On the downside, 0.6070-0.6100 forms key support, which includes 50-day moving average at 0.6100, 200-day moving average at 0.6075, and a key Fibonacci level at 0.6070. Breaking through this support would likely require the market to delay expectations of Fed rate cuts and could push NZDUSD towards the 0.6000 mark. On the upside, 0.6145 is near-term resistance (Fibonacci level) before 0.6230.
NZD/AUD is edging down to just below 0.9100, which translates to AUDNZD hovering around the key 1.100 level. Markets are speculating on the RBA’s next move, and news suggests the AUD could perform well if the RBA raises rates while the Fed begins easing.
NZDEUR continues to trade within the 0.5650 – 0.5750 range, with a slight bias towards a stronger EUR following the French elections.
Today, there are only minor economic releases, such as Australian business and consumer confidence data and the US NFIB small business survey. Attention will be on Fed Chair Powell’s comments to Senate lawmakers, but the key focus will be on the upcoming US CPI report later this week, which will have a greater market impact

Here are the latest mid-market rates:

Currency PairMid-market rate



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