NZD Outperforms, Trade Data On Tap

NZD/USD spent most of the post Asia close edging lower. We currently trade at 0.6230, versus a high of +0.6270 late yesterday. Support has been evident just under 0.6220 in recent sessions, beyond that is the 0.6200 level. Note on the topside the 50-day MA comes in at 0.6317. We haven't been above this level since mid April of this year.

• Early doors the focus will be on NZ trade figures for June, which prints shortly. There is no consensus, but last month exports were NZ$6.95bn, versus imports of NZ$6.69bn, leaving a narrow trade surplus of NZ$263mn. The past 12 months remains deeply in deficit though.
• NZD is only G10 currency to rise in the past 24 hours, outperforming broader USD strength. The kiwi is up 0.22%, versus the DXY's +0.30% gain over this period.
• Cross asset signals were positive from an equity standpoint, while risk aversion ticked lower in terms of the VIX. NZD/JPY holds above 86.00.
• AUD/NZD remains sub 1.1060, staying away from a test of 1.1100 for now. Yield momentum in the government bond space is pointing to lower AUD/NZD cross levels, particularly for shorter tenor spreads, although the picture is more resilient in the swap space.