 | |  | | [16:47 NZD/USD: Bounces Back Towards Overnight Highs] San Francisco, January 12:
The Kiwi is trading at 0.6832/35 currently, recovering all its morning losses in
this sharp bounce back today. While EUR & AUD have regained ground, the Kiwi has
outperformed with the result that AUD/NZD is lower at 1.1385 from 1.1400 this
morning. Possibly bolstering the Kiwi is asset switching. The ZAR has seen heavy
selling today, in contrast to new highs on AUD & NZD earlier today. The USD/ZAR
has been bolstered on rumored M&A bids with a UK bank buying, rising from 6.66
opening levels to a rise above 6.90. Traders looking for a higher yielding safe
haven out of ZAR would naturally look to the spreads on NZD.
Another positive for the Kiwi is the report in the NZ Herald for Tuesday that
China"s minister Ma Xiuhong says that a New Zealand/China free trade deal is
likely. The framework is expected to be finalized by June. Resistance is seen at
0.6838 and the overnight high followed by 0.6850. --
Rhonda.Staskow@Thomson.com/jc |  |  |  |  |
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