NZD/USD supported on firmer risk appatite, US dollar slides

• NZD/USD bulls step in as the US slides at the start of the week. 
• The central bank meetings will start off with the RBA.

NZD/USD is firm into the closing part of the New York session having rallied from a low of 0.6538 to a high of 0.6597. At 0.6582, the cross is 0.67% higher on Monday as the US dollar slides on the back of prospects of a centralised effort to contain inflation by global central banks, bridging the divergence between the Federal Reserve. 

The dollar index (DXY) was down 0.63% at 96.56 putting it on track for its largest daily fall since Jan. 12 as central banks’ focus this week will be on securing a sustainable business cycle. ''That means emergency monetary policy accommodation will need to be unwound in most geographies in the foreseeable future,'' analysts at ANZ bank explained.

This has led to a rebound of global risk appetite. The three main benchmarks on Wall Street all traded higher. By 20:37  the Dow Jones Industrial Average rose 0.83% the S&P 500 1.49% and the Nasdaq Composite 2.61%.

Meanwhile, the Reserve bank of Australia is going to be taking the spotlight in Asia tomorrow.''While no hike is expected, we do expect the RBA to formally end QE, and to signal that QT will start from next month as the bonds it owns start to mature, and it’s the market’s take on this that has and will influence the AUD,'' analysts at ANZ bank said. ''Commodities continue to boom, with the broad CRB Index up just under 1% to a 7yr high. All of this has potential to support the NZD down here, or limit the downside.''