NZD: Can't Sustain +0.5800, Broader USD Indices Recover, AUD/NZD To Fresh Highs

NZD/USD couldn't sustain +0.5800 levels as Tuesday's session unfolded, we track near 0.5780/85 in early Wednesday dealings. NZD/USD outperformed most of the G10 for Tuesday trade, as the USD rebounded across the board, except against AUD. Notably the AUD/NZD cross got to fresh cycle highs of 1.1660 (tracking near 1.1650 in latest dealings). This comes ahead of the Nov Australian CPI print later. 

• For NZD/USD, Tuesday highs were at 0.5810, while downside focus is likely to rest around the 0.5740, which has marked recent lows. Late Dec highs at 0.5853 will remain an upside focus point if we can push through the 0.5800 level sustainably.
• More broadly, the USD BBDXY index rose around 0.20% for Tuesday's session, as markets appear lacking in conviction ahead of the important US ISM services and NFP data releases later in the week. Elsewhere, Euro weakness was evident through the session on the back of softer-than-expected French and German inflation data released.
• This likely saw some negative spill over to NZD, despite further global equity gains/stronger precious/metal commodity prices. These trends appeared to aid the AUD more.
• Overnight we did see the Global Dairy Trade Auction result post a +7% rise on the mid Dec outcome. This was the first rise since August last year for the auction result.
• Note the following option expiry for NZ cut later: $0.5650(N$1.1bln).