May 18, 2023 22:57 GMT
Marginally Extends Gains After April Trade Surplus
NZD/USD prints at $0.6240/45, the pair has marginally extended early gains after the NZ April Trade Balance printed a surplus of $427mn.
- We sit at session highs at the 20-Day EMA ($0.6242). The 200-Day EMA ($0.6258) presents as the first target for bulls, a break through here opens high from May 11 ($0.6385).
- Rate differentials, observed via 2 year swap rates, sit at +119bps and point to further potential upside in NZD/USD.
Fig 1: NZ US 2 Year Swap vs NZD/USD Daily Spot
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