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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.
NZD
NZD/USD is holding firmer after the Q1 Employment report. We sit at $0.6220/25 ~0.3% firmer, the pair printed its highest level since 14 April before marginally paring gains.
- Widening rate differentials, observed via 2 year swap rates, indicate possible further upside for NZD/USD. We have widened to +104bps from ~70bps in late April.
- At the latest GDT auction Whole Milk Powder prices rose to $3230/tonne from $3089/tonne at the previous auction.
- The 200-Day EMA ($0.6249) is the next target for bulls, a break through here opens 5 Apr high at $0.6379.
- Bears first look to break the 20-Day EMA ($0.6193) opening year to date lows at $0.6085.
- Today's FOMC meeting and Fed Chair Powells press conference presents the next risk events for the pair, the Fed is expected to hike rates 25bps.
Fig 1: NZ US 2 Year Swap vs NZD/USD Daily Spot
Source: MNI/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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