NZD Best Performing G10 Currency As Geopol Tensions Ease, Job Ads Decline

The Kiwi higher against all G10 currencies on Monday, finishing the session up 0.49% vs the USD at 0.5918 as diminishing geopolitical tensions have moderately bolstered risk sentiment to start the week with global indices in the green and higher beta currencies firmer in G10. The BBDXY closed unchanged at 1,264.28.

• The NZD/USD reached a post Asia session low of 0.5895 before recovering to 0.5923, we closed just below here at 0.5918. The pair remains in a downtrend as it continues to trade well below the 20, 50, 100 & 200-day EMA's although the 14-day RSI has started to tick upwards now at 40, up from 31 this time last week, while the MACD is showing diminishing red bars, signally a protentional turnaround
• Key levels to watch: Initial support is 0.5852 (Apr 19 lows) a break here could signal a move to 0.5800 (round number resistance) while a break back above 0.5900 is needed to retest 0.5950 (Apr 15 highs).
• Job ads experienced a slight decline of 0.4% in March compared to February, indicating a notable slowdown in the rate of decline since the beginning of the year. Public Sector job ads contributed to the overall decrease, while Professional Services roles, particularly in Human Resources & Recruitment, Consulting & Strategy, and Legal, saw significant growth. Applications per job ad remained stable overall, with Retail & Consumer Products experiencing a notable increase.
• The US-NZ 2y is down 4bp to -15.5bps
• Option expiries: 0.5900 (NZD340.9m), 0.6100 (NZD331.2m) for Apr 23 NY Cut, while notable upcoming strikes are 0.6100 (NZD605.4m April 26), 0.5940 (NZD385.7m April 26)
• Looking ahead: Next data released will be Trade Balance on Wednesday