
NZD/USD pressure mounts as payrolls looms large
NZD/USD has fallen sharply as Fed rate expectations reset higher, but extreme downside stretch and major support raise the risk of a violent counter-trend rebound.
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NZD/USD has fallen sharply as Fed rate expectations reset higher, but extreme downside stretch and major support raise the risk of a violent counter-trend rebound.

NZD/USD has triggered a bullish reversal after a punishing two-month decline, with less hawkish Fed pricing and an aggressive RBNZ rates path providing fuel for a rebound.

NZD/USD has become unusually sensitive to relative front-end rates, with the US two-year yield advantage now near historically extreme levels.

The Kiwi has gone quiet, but the RBNZ Survey of Expectations out soon may provide the catalyst traders have been waiting for.

Stronger employment wasn't enough to offset a surge in labour force participation, leaving unemployment at its highest level in more than a decade. The report keeps a September RBNZ hike in play but casts doubt on the rate path beyond.