Kiwi Lags Peers

The kiwi brings up the rear in G10 FX space ahead of a long weekend in New Zealand, with a BBG trader source suggesting that a softer PBoC fix triggered sales of Antipodean currencies (even as the fix was only slightly above BBG median est.).

• NZD/USD has attacked its 50-DMA at $0.7143 and last trades precisely at that level, 13 pips worse off on the day. A clean break would open up Jan 28/18 lows of $0.7196/0.7096.
  • Implied 1-month NZD/USD volatility has fallen to worst levels since late Dec, last sits at 9.5350.
• AUD/NZD sits at NZ$1.0625, a touch higher on the day, after posting a solid round of gains on Thursday & moving away from its two-months lows. It is still down on the week and bears look for a resumption of losses, followed by a move through Feb 3 low of NZ$1.0541. Bulls keep an eye on Feb 2 high of NZ$1.0678, followed by resistance from a series of highs around NZ$1.0715.
• NZD/JPY has shed 13 pips and now deals at Y75.40. A break under Feb 1 low of Y74.92 would expose support from the 50-DMA/23.6% retracement of the Oct 30 - Feb 3 rally/Jan 28 low at Y74.22/74.21/74.13. Bulls need a rebound above Feb 3 high of Y75.86 to regain momentum.
• The RBNZ kept its bond purchase target at NZ$570mn in its weekly LSAP schedule.