NZD Claws Back Losses, Respects Familiar Range

NZD/USD virtually erased the prior day's losses Thursday. Broader USD sales and a move higher in BBG Commodity Index lent support to the pair, but a familiar range remained intact.

• New Zealand's ANZ Truckometer Heavy Index rose 2.8% M/M in Mar, building on its 3.3% gain in Feb. ANZ commented that "the data will be hard to interpret over the next couple of months" due to "regionalised snap lockdowns last month, and as the seasonal adjustment process struggles to make sense of the plunge a year ago."
• In case you missed it, NZ imposed a temporary ban on arrivals from India between Apr 11-28 in response to the increase in the number of Covid-19 infections among returnees from that country.
• NZD/USD last sits at $0.7053, little changed on the day. A break above $0.7069/70, which capped gains earlier this week, would allow bulls to take aim at the 100-DMA at $0.7145. Bears look for a dip through Apr 7 low of $0.6997, toward Apr 1/Mar 25 lows of $0.6946/43.
• Next week, focus in NZ turns to card spending (Tuesday), food price index (Thursday) & BusinessNZ M'fing PMI (Friday).
• Meanwhile, Wednesday brings the next Monetary Policy Review from the RBNZ.