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Wing Insurance

AUSSIE-KIWI: AUD/NZD has trimmed earlier gains and last sits +5 pips at
NZ$1.0804, as the Aussie has given up the bulk of its earlier strength. Little
of note in minutes from the RBA's most recent MonPol meeting, with the recent
ABS payroll data showing that "over the seven weeks from mid-March to early May,
total payroll jobs fell by 7.3%", while "the decrease in the number of jobs in
the week ending 2 May was 1.1%".
- Earlier, we heard from top RBNZ officials. RBNZ Asst Gov Hawkesby told BBG
that the central bank sees no need to adjust monetary stimulus after the release
of the budget & expects NZD to continue depreciating. Dep Gov Bascand spoke with
RTRS and struck a more dovish note, signalling that policymakers will review all
options, including negative rates & expanding the QE plan. In local data, NZ Q1
input/output PPIs topped expectations.
- On the topside, all eyes are on NA$1.0866, the high of 2019. A rally through
there would open up NZ$1.0898, a 76.4% Fibo retracement of a slide from the 2018
high to the 2020 low. Bears look for a drop below May 13 high of NZ$1.0781,
towards NZ$1.0608, the trough of May 11.