Kiwi Performance Mixed, Q1 ToT Out Today

NZD/USD mostly followed equity market gyrations and broader USD trends post the Asia close. Gains to 0.6540 couldn't be sustained and we open this morning around 0.6485.

• Compared to the FX majors, NZD has seen some slight outperformance over the past 24 hours, down 0.48%, versus the the DXY rise of 0.8% over the same period.
• US yield moves are dominating in the near term, particularly after better than expected US data overnight. NZD/JPY continues to trend higher, now up to 84.40, as yen underperforms. We are now comfortably above the 50-day MA at 84.02.
• NZD couldn't match AUD and CAD though. The AUD/NZD cross pushing to a high of 1.1075/80, close to multi-week highs. We open this morning down a touch at 1.1065.
• On the data front, the Q1 NZ terms of trade prints today. The forecast is +1.3% QoQ, versus the Q4 dip of -1.0%.
• The RBNZ has also announced an end to restrictions on bank dividends from July 1 of this year. This isn't a surprise, as the change was expected to take place this year on the basis of no worsening economic conditions. The restrictions were put in place in March 2020 to support financial market stability.