The Kiwi and Aussie continue to outperform the FX majors and today the Kiwi hit a new 3-month high after the release of Q2 inflation data which showed an acceleration in the metric.
Yesterday, we highlighted the monthly charts of the major Commodity FX pairs and commented on how all three pairs have hit long term critical support levels.
Below we showcase the AUD and NZD daily price charts with the long term and short term rate differentials vs the USD and you can clearly see that we are at a very critical inflection point for these pairs. All in all, we believe there are positive undercurrents for Commodity FX and they remain our top picks amongst G-10 FX vs USD moving forwards.
