NZD Edges Higher As RBNZ Comes Into Focus, Steady Trends Elsewhere

It has been a relatively muted start for G10 FX trading in the first part of Wednesday trade. The BBDXY sits a touch lower, last near 1240.55.

• In the cross asset space, US equity futures sit marginally higher, while the early US yield trend is higher, but gains are less than 0.5bps at this stage.
• NZD/USD has drifted a little higher, as the upcoming RBNZ decision comes into focus. The pair last in the 0.6065/70 region. Initial resistant holds at 0.6076/77 (50-day EMA/Apr 9 high) a break above which brings 0.6100 into view (round number resistance).
• No change is expected from the central bank, but any subtle shifts in the policy statement will be monitored for. Our bias rests with continued push back to any early dovish shift. Our full preview is here.
• AUD/USD is close to unchanged, last at 0.6630, with spill over from the RBNZ decision the likely main focus point today.
• USD/JPY is relatively steady, last in the 151.75/80 region. BoJ Governor Ueda is before parliament this morning, but has stuck to recent rhetoric in terms of the economy and inflation. The Mar PPI printed at 0.8% y/y, in line with consensus expectations.