For Further insight, see Attached PDF

NZDUSD

The Kiwi-dollar was the largest percentage mover on the day, as a wave of short-covering propelled the currency to 6-month highs against itsUS counterpart. Likewise boosting the NZDUSD pair, stop-hunting on the AUDNZD cross sent it spiraling below 1.1300 and led to a broader NZD rally. Given that these price moves occurred on a drop of open interest, traders may choose to re-enter the market on any surprises in the NZDUSD trade balance figures due later today at 22:45 GMT (18:45 EST). As such, watch for any sharp moves in NZD pairs following the number, as pronounced momentum could lead to breaks of key support and resistance levels.

NZDJPY

The NZDJPY pair fell victim to a sharp Kiwi rally and relative Yen inaction.Indeed, many traders bemoaned the fact that the Japanese currency remained comatose through the London and New York sessions, with the USDJPY strictly bound between 116.35-116.65 on the day. As a result, the NZDJPY pair finds itself near 9-month highs on what is widely considered short-covering in the NZDUSD. An empty economic calendar may arguably challenge the true significance of the NZDJPY rally, but an upcoming New Zealand Trade Balance report may provide reason to extend or erase the recent move. The technical picture suggests that the NZDJPY advance may continue, but we must wait for Kiwi trade report for true confirmation.

AUDNZD

The AUDNZD found fresh 6-month lows, as a triggering of stops below the significant 1.1300 handle sparked sharp declines in the Asia/Pacific currency cross. Much like in the NZDJPY, however, such a move came on order flows and not any significant economic data. As such, the same technicals that sparked declines were able to protect it from further losses, with the AUDNZD just short of a very significant support level. As such, it lies in the balance, with any further breaks below indicative of a continued downtrend, while a reversal could bring the Aussie rally that many traders have long been expecting.