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Kiwi Catches Bid After Westpac Says RBNZ Won't Cut OCR In Foreseeable Future


NZD has caught a bid after Westpac changed their RBNZ call and said that they no longer expect any changes to the OCR in the foreseeable future, while the latest BNZ/SEEK report pointed to a continued, "creditable" recovery in NZ job advertising. NZD/USD has added 13 pips thus far and last sits at $0.7185, trading through Wednesday's highs. The kiwi is the best G10 performer in early Asia-Pac trade.

  • As a reminder, Westpac had previously expected the RBNZ to deliver two 25bp cuts in May and August this year, which would bring the OCR into negative territory.
  • Statistics NZ's latest weekly experimental data based on payday filing suggested a continued surge in paid jobs.
  • NZD/USD may have drawn some additional support from a broader risk-on theme, seemingly a carry-over from NY hours. The rate was in demand Wednesday amid a smooth presidential inauguration in the U.S.
  • Bulls look for a break above Jan 13 & 14 highs of $0.7240 before taking aim at $0.7315, which represents the high print of Jan 6. Conversely, a dip through Jan 18 low/50-DMA at $0.7096/90 would expose Dec 28, 2020 low of $0.7084.
  • Focus moves to BuzinessNZ M'fing PMI & quarterly CPI report due out of New Zealand on Friday.

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