May 19, 2022 22:12 GMT
NZD/USD caught a bid Thursday amid a decline in U.S. Tsy yields as well as firmer crude oil prices. The rally was capped at $0.6417, the rate's best level in ten days, before stabilisation in NY hours.
- NZD/USD changes hands at $0.6385, a touch higher on the day. From a technical point of view, the initial bullish target is provided by May 5 high of $0.6568. On the flip side, the key near-term support has been defined at/around $0.6232, the 61.8% retracement of the 2020 - 2021 rally.
- The assessment of Budget 2022 delivered on Thursday dominates local headlines, with much focus on measures to address the living costs crisis. These include an extension to fuel tax reductions, cuts to public transport prices as well a NZ$1bn cash handouts scheme. NZ Herald reported that the "Treasury recommended against the Government's NZ$350 cost of living payment for middle-income household," arguing that it would "make inflation worse in the short term."
- New Zealand's trade balance and credit card spending are on tap today.
- Reminder that the RBNZ will announce its OCR decision next Wednesday.