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of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
NZDJPY
The NZD/JPY cross is under further pressure in early Wednesday dealings. We were last near 91.10, close to late Feb lows near 91.05. This is also very close to the 50-day EMA, see the chart below.
- The softer equity backdrop over the past 24 hours has likely weighed on the pair, while headlines crossed earlier that Japan's biggest local bank (MUFG) is readying for BoJ lift off this month (see this BBG link). This is likely aiding yen at the margins (we are sub 150.00 for USD/JPY).
- For NZD, Chief Economist for the RBNZ Conway noted policy is likely to need to stay restrictive for some time and that household inflation expectations remain a watch point. He noted the RBNZ may be able to start easing sooner, but this would likely be contingent on the Fed easing in the second half of this year.
- NZD/USD is down around, back near 0.6070/75.
- The other watch point for NZD, is the AUD/NZD cross, which is close to the 1.07 level, but has been able to breach higher at this stage.
Fig 1: NZD/JPY Versus Key EMAs
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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