NZD Hits Multi-Month Highs, Ardern Highlights Strategic Importance Of Five Eyes

The kiwi took flight Wednesday and NZD/USD surged to fresh multi-week highs, amid a positive showing from commodity markets (BBG Commodity Index hit best levels in three years). Post-FOMC weakness in U.S. dollar lent further support to the pair, which allowed it to approach resistance at $0.7269, the high print of Mar 18. An interview with RBNZ's Harris circulated in the NZ afternoon had a very limited impact on the kiwi.

• PM Ardern sought to diffuse tensions over New Zealand's reluctance to speak out about China's human rights record within the framework of the "Five Eyes" alliance. She insisted that the alliance "will always be very, very strategically important to NZ" and her country will raise human rights issues with its partners. Ardern spoke after meeting with the American Chamber of Commerce this morning.
• In their Property Market Update for Q1, CoreLogic said they expect NZ housing market to cool, but noted that "speculation about rents increasing and investors racing to sell rental properties [in reaction to the gov't's housing policy package] is likely unfounded."
• Trade balance & the final reading of ANZ Business Confidence headline the local docket today. The latest Consumer Confidence survey from ANZ comes out tomorrow.
• NZD/USD trades at $0.7262, 7 pips better off as we type. A clearance of the 61.8% recovery of the Feb 25 - Mar 25 slide/Mar 18 high at $0.7266/69 would clear the way to Mar 2 high of $0.7307. Conversely, a fall through Apr 22 low of $0.7146 would turn focus to Apr 19 low of $0.7122.