NZD/USD touched a 14-month high today
"Half-hearted" is how I would describe the breakout in the New Zealand dollar today.
The kiwi is neck-and-neck with the pound as the top G10 performer today and remains solidly higher but the failure to extend gains after briefly touching an 14-month high is a bit of a wet blanket.
In general, you can tell a great deal about a market in how it breaks out. What the failure to hold anywhere near 0.7350 shows in NZD/USD is a lack or enthusiasm or (at the very least) a lack of urgency.
It's symptomatic of an August market that's waiting for something from the Fed or elsewhere to capture its imagination. At times that would send up some major red flags but you have to give some leniency for the time of year and economic calendar.
