In the backdrop of a marginally stronger USD, the NZD has been the weakest performing currency over the past 24-hours.
However, it has managed to find support at the 0.6500 level.
PMI data released overnight showed that manufacturing activity in the Eurozone is now expanding slightly faster than in the US.
Strength in the USD has no doubt weighed on the latter while a weaker EUR has helped boost regional activity.
However, the currencies response to the data was relatively modest. The EUR/USD pushed a little higher after the release of the German PMI but was not able to hold onto its gain. It gained another boost, as the USD fell following the disappointing US manufacturing PMI data. But the USD later recovered, driving the EUR/USD back down to below 0.6120.
The NZD and AUD both slipped during the course of yesterday afternoon. However, the NZD/USD found support at the 0.6500 in the early evening. It has managed to just hold its head above this level for most of the night.
There are few obvious catalysts for the NZD/USD in the days ahead, in the US Thanksgiving curtailed week. Support will likely be encountered on any dip to 0.6430 while resistance will be seen at 0.6600. However, over the medium-term we see a weaker NZD/USD. We continue to see a trough at 0.6000 next year, though we have recently pushed this into the later part of 2016.
We also see further medium-term downside for the NZD/AUD. From 0.9050 currently, we anticipated the cross will trade down to the mid-80s next year.
For today, there is little on the domestic agenda to impact on the currency, but look out for a scheduled speech from RBA Governor Stevens this evening. Tonight there is also a smattering of US data releases, most importantly the second reading of US Q3 GDP.
Get our daily currency email by signing up here:
Kymberly Martin is on the BNZ Research team. All its research is available here.