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Kiwi Catches Bid

NZD

NZD has garnered some strength in the wake of the RBNZ's latest monetary policy decision, which didn't really include any notable surprises or fresh insights. NZD/USD punched through resistance from Apr 5 high of $0.7070, printing best levels in three weeks. There was chatter of buy stops being triggered above the aforementioned level. The spot last trades +33 pips at $0.7086, just shy of session highs.

  • NZD/USD implied ATM volatilities fell across the curve in the wake of the RBNZ's stand-pat decision, with 1-month tenor showing at its lowest level since early Mar 2020.
  • AUD/NZD slid through Apr 2 low of NZ$1.0810 and currently trades at NZ$1.0807, 29 pips worse off after bottoming out at a new three-week low. Bears keep an eye on the 50-DMA at NZ$1.0783.
  • NZD/JPY has added 21 pips so far and last sits at Y77.14, testing the 50-DMA. A clean break above that moving average would open up Apr 5 high of Y77.96.
  • NZD/CNH has narrowed in on its 100-DMA at CNH4.6443. The rate last trades +181 pips at CNH4.6355.

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