The NZD has spent the past 24 hours consolidating in a 0.8320-0.8375 range. Yesterday we warned of the risk the RBA could hold rates at 4.25%, sending the AUD and NZD higher (a 25bps rate cut was 75% priced in). This broadly panned out.

Since our last report on Thursday, the NZD/USD has spent most of its time consolidating in a 0.8300-0.8380 range. Still, this was enough for the NZD to take out the title of strongest performing currency last week.

CURRENCY: Having failed to break through topside resistance at 0.8380 last week, the NZD should consolidate ahead of local employment data and this afternoon's RBA cash rate decision at 4.30pm NZT.

It was a quiet day for the NZD. Overnight, in generally quiet markets the NZD/USD consolidated around the 0.8340 level.

CURRENCY: Topside resistance at 0.8380 will be questioned during today's local trading session. Supply issues for buyers are accentuating the moves as underlying demand remains unsatisfied at this point.

The NZD/USD showed little direction for most of the day yesterday, until the evening release of PMI data in Europe. Surprising to the upside, these buoyed global sentiment, causing a surge in "risk-sensitive" currencies such as the NZD. The NZD/USD climbed to 0.8340 currently.

CURRENCY: Positive equity markets will continue to support Australasian currency moves today as will the stronger global PMI releases that have been delivered. Topside resistance around 0.8380 may well be reached.

The NZD showed little response to NZ data releases yesterday, but was dragged higher on the back of a rising AUD. It managed to hold onto most of its overnight gains, despite an early morning surge in the USD. The NZD/USD currently trades around 0.8260.

CURRENCY: Global PMI releases should be followed with interest today, particularly from China, as markets look to continue the weak USD theme. NZD topside attempts should again be quelled around the 0.83USD level.

The NZD lost ground relative to the USD, but gained relative to a weak EUR, as the EU/Greece negotiation is yet to find resolution. The NZD/USD currently trades around 0.8190.