Forex Flash: NZD/USD stabilizes as VIX operates lower – NAB

FXstreet.com (Barcelona) - Most asset markets over the past month have been range bound and measures of market volatility - like the VIX index - have either held at historically low levels or fallen further. Consistent with this backdrop, the NZD has also been a picture of calm. The NZDUSD has spent most of August drifting sideways in a narrow 0.8000-0.8250 range. NZDUSD volatility, meanwhile, remains around multi-month low.

According to the NAB Strategist Team, "A part of this lethargy can be blamed on thinning volumes(thanks to the European holiday season." However, there also hasn't(been anything to really alter perceptions of global growth. Europe still appears to be muddling through, supported by a(renewed intent from politicians to backstop sovereign bond(markets. US growth is weak, but positive, and encouraging signs(out of the housing and labor markets bode well for the future. "The only news to trouble investors in any way has come out of(China, though overall, consensus expectations(for global growth to print around 2.8% in 2012 remain largely(on track." the Team notes.