Overnight news that New Zealand center right has recovered its lead in the polls ahead of the national election on September 23, sent kiwi sharply higher and turned the commodity pair from a relative weakness performer to relative strength. The news that center-left held the lead for the past few weeks has weighed heavy on kiwi with markets worried that Labor would enact a series of anti-growth policies.

So the relief in the pair has been palpable and if Conservatives of the National party manage to hold on to their lead through election and hold on to power the kiwi could extend its gains. Meanwhile the loonie looks like its exhausted. USD/CAD has found serious support above the 1.2000 level and that makes NZDCAD and interesting long as the pair tries to climb back towards the .9000 level.