March 30, 2023 01:02 GMT
Lagging Better Global Equity Market Sentiment
NZD/USD has lost a little more ground as the morning session has progressed. The pair was last at 0.6210/15, around -0.20% below NY closing levels. This is line with the rest of G10 (ex JPY), which is mostly tracking softer versus the USD, although NZD and NOK are modestly underperforming. In terms of downside levels, lows near 0.6180 were supported on Monday.
- Locally, the ANZ activity outlook for March improved slightly to -8.5 from -9.2, while business confidence edged down to -43.4 from -43.3. This followed the earlier 9% slump in Feb building approvals (-9%), which are back to mid 2020 ranges from a levels standpoint.
- These releases continue to suggest a challenging activity backdrop ahead of next week's RBNZ meeting, although market pricing remains at +25bps for the meeting.
- Cross asset signals are fairly muted, with US equities down a touch, while US yields have firmed slightly.
- NZD/USD has lagged the better equity tone globally since the start of the week, see the chart below, although the divergence is modest at this stage.
Fig 1: NZD/USD Versus Global Equities
Source: MNI - Market News/Bloomberg
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