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Marginally Firmer In Early Trade, Light Data Docket This Week

NZD

NZD/USD prints at $0.5885/95, the pair is ~0.1% above Friday's closing level in a firmer start to the week's dealing albeit amid thin liquidity. A high of $0.5920 was printed before gains were pared through the early part of the session.

  • An offer in USD/JPY, as BOJ's Ueda said it's possible that the BOJ may have enough information about wage rises by year end, has spillover over into wider pressure on the greenback boosting the kiwi in early dealing.
  • On Friday Kiwi pared gains in the NY session as US Tsys sold-off alongside higher inflation breakevens which helped the greenback regain ground. NZD/USD trimmed its weekly losses to sit down ~1% through the week.
  • Technically the pair remains in a downtrend; Bears look to break $0.5859 (6 Sep low) which opens $0.5757 (low from 4 Nov 22) and $0.5728 a Fibonacci projection. Bulls target a break of the 20-Day EMA ($0.5942), which opens the high from 10 Aug ($0.6118) and the 200-Day EMA ($0.6157).
  • Cross asset wise on Friday; BBDXY rose for the 8th consecutive week, the longest such run since 2005, finishing Friday's trade up ~0.1%. S&P500 was ~0.1% firmer and 10 Year US Tsy Yields rose 2bps.
  • The data docket is relatively light this week; tomorrow we have Card Spending and Net Migration. On Wednesday Food Prices cross, before BusinessNZ Mfg PMI rounds off the docket on Friday.

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