Firmer Start, PSI On Tap

NZD/USD prints at $0.6140/45, ~0.2% firmer in early trade. The USD is pressured on Monday morning as a potential rescue for SVB and the lower yields weigh on the greenback.

• On Friday NZD/USD finished trading up ~0.5%. THe pair firmed in the aftermath of the US Labour Market Report, the USD was pressured as the unemployment rate rose and average hourly earnings were also soft, meeting resistance above $0.6170.
• Gains were pared as continued US Equity weakness as SVB;'s turmoil spurred concern about further distress in the US banking industry.
• NZD/USD is consolidating, bears look to target the low from 11 Nov at $0.5985, a break through here opens 2022 lows at $0.5512. Bulls first look to break $0.62 to turn the tide.
• AUD/NZD printed its lowest level since early January before marginally paring losses on Friday, bears target the 2022 low at $1.0471.
• Cross asset wise, S&P500 was down 1.5% and DXY fell 0.4%. 10 Year US Treasury Yields were down ~20bps.
• On the wires today we have the Feb Performance Services Index and Food Prices. There is no estimate for either print.