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Aided By Lower US Yields As Powell Less Hawkish Than Feared

NZD

NZD/USD got to 0.5940 late in US trade, as US yields fell as Fed Chair Powell spoke. We sit slightly lower in earlier Thursday dealings, last near 0.5930/35. NZD rose 0.70% for Wednesday's session. We are comfortably above post employment data lows from early yesterday at 0.5875. Post FOMC dips back to 0.5905/10 were supported.

  • NZD didn't appear to see much spill over from the sharply stronger yen levels from late in US trade. The NZD/JPY cross fell to 90.80/85 but we sit back above 92.00 now, as yen has pared what looks like further intervention induced gains.
  • More broadly, NZD/USD rose as Fed Chair Powell stated it's unlikely the next rate move will be a hike. Fed Funds futures have shifted closer to fully pricing a first cut in November again. Tsy futures ended off highs, but cash yields still ended comfortably down for the session.
  • US equity sentiment faltered despite the US Tsy rally, with weaker energy prices weighing. Still, US futures have opened up firmer in the first part of Thursday trade.
  • On the data calendar we have March building permits coming up shortly.
  • Levels wise for NZD/USD, the 20-day EMA isn't too far away on the topside, last near 0.5950.
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NZD/USD got to 0.5940 late in US trade, as US yields fell as Fed Chair Powell spoke. We sit slightly lower in earlier Thursday dealings, last near 0.5930/35. NZD rose 0.70% for Wednesday's session. We are comfortably above post employment data lows from early yesterday at 0.5875. Post FOMC dips back to 0.5905/10 were supported.

  • NZD didn't appear to see much spill over from the sharply stronger yen levels from late in US trade. The NZD/JPY cross fell to 90.80/85 but we sit back above 92.00 now, as yen has pared what looks like further intervention induced gains.
  • More broadly, NZD/USD rose as Fed Chair Powell stated it's unlikely the next rate move will be a hike. Fed Funds futures have shifted closer to fully pricing a first cut in November again. Tsy futures ended off highs, but cash yields still ended comfortably down for the session.
  • US equity sentiment faltered despite the US Tsy rally, with weaker energy prices weighing. Still, US futures have opened up firmer in the first part of Thursday trade.
  • On the data calendar we have March building permits coming up shortly.
  • Levels wise for NZD/USD, the 20-day EMA isn't too far away on the topside, last near 0.5950.