Kiwi On A Roll

The kiwi dollar topped the G10 scoreboard Monday as the risk switch flicked to on amid continued sell-off in core FI. NZD/USD staged a convincing break above its 200-DMA tested earlier this week and soared to its best levels since November 2021.

• The bulk of restrictions associated with the red setting of New Zealand's traffic light framework of Covid-19 response will be ditched by April 5. The changes announced by PM Ardern this morning include a significant reduction of the scope of vaccine mandates and the end of mandatory vaccine passes.
• FinMin Robertson told the Auckland Chamber of Commerce that the imminent RBNZ rate hikes will put pressure on New Zealand businesses and consumers, while flagging the challenge posed by inflation.
• NZD/USD has added a handful of pips on top of yesterday's rally, printing fresh cycle highs this morning. It last changes hands at $0.6970, up 6 pips on the day. Note that the RSI is not yet in overbought territory.
• Bullish focus turns to the psychological $0.7000 barrier and a break here would expose Nov 18 high of $0.7053. Bears need a pullback under yesterday's low of $0.6864 before taking aim at Mar 15 low of $0.6729.