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Kiwi Garners Strength Post-RBNZ, Draws Support From Strong Commodity Markets

NZD

NZD/USD surged past its Apr 5 high of $0.7070 after yesterday's monetary policy decision from the RBNZ, reportedly triggering the covering of buy stops above that level. The rate extended gains later in the day amid a strong showing from commodity markets, with BBG Commodity Index rallying to a four-week high.

  • NZD/USD implied ATM 1-month volatility fell to the lowest level since early March yesterday and last sits at 8.63%.
  • New Zealand's REINS house sales surged 31.2% Y/Y in March, building on February's 14.6% increase and marking the strongest March in 14 years. The price index rose 24.3% Y/Y, while new price records were set in 12 out of 16 regions.
  • Spot NZD/USD trades flat at $0.7141, with bulls seeking further gains past the 100-/50-DMAs at $0.7149/58, which capped yesterday's rally. Above there would open up the 61.8% retracement of the Feb 25 - Mar 25 slide/Mar 18 high at $0.7266/69. Bears look for a dip through Apr 7 low of $0.6997, towards Apr 1/Mar 25 lows of $0.6946/43.
  • New Zealand's food price index comes out shortly, with BusinessNZ M'fing PMI coming up tomorrow.

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