Dips To Fresh Lows Before Stabilizing

NZD fell to fresh YTD lows post the Asia close, dipping just beneath 0.6200. We currently sit slightly firmer at 0.6225.

• Amidst continued broad USD strength, NZD performance has been around middle of the pack compared to the rest of the G10 bloc over the past 24 hours. Outperforming NOK, GBP and JPY but slipping against EUR and CAD.
• Yield momentum continues to move against NZD/USD though, the 2yr NZ-US spread back to lows from July last year. We have moved from a recent high of +86bps back to +39bps.
• Earlier, REINZ house sales printed at -28.4% YoY, versus -35.2% YoY prior. The REINZ house price index fell by 1.6% MoM following declines in April and March. In YoY terms we are now up 3.7%, versus 6.3% in April.
• The Q1 current account deficit printed slightly wider than expected at -6.143bn, versus -5.963bn consensus. The deficit as a share of GDP sits at -6.5% in the 12 months to the end of Q1. Tomorrow Q1 GDP prints.