USD Strength is the Theme

The strength of the USD across the board has been the theme during this morning session. The USD has pushed itself against AUD and NZD the most but we also see EUR and GBP weaker and USDJPY close to its highs of the session so far. Another phenomenon that has been true for the whole of this week has been the strength of the pound. Post-Brexit, we see that for the first time, the pound is holding its own against other currencies and posting gains against them. We see the pound doing well against the Euro, CAD and NZD as well.

We see some post-Brexit data trickling in for the past 2 weeks and they have not been as bad as was predicted. This has bolstered the trust in the economy of Britain, as a whole, and the strength of the pound in particular. This is now being reflected across the board.

In other news, the New Zealand trade balance came out at -433M against the expected -320M. This has slightly weakened the NZD and has made it the weakest currency of the session along with the AUD.

Looking at the daily chart below of NZD/USD, we see that this pair has tried to push through resistance yesterday but didn’t manage it and was pushed down hard. This shows a lot of sellers at the top and with USD gaining strength, we could see NZDUSD weakening further.