NZD Hits New Lows After Strong US Data/Powell Interview

NZD was the best performing G10 currencies overnight, however still 0.18% lower for the day after US yields moved higher as a continuation from Powell's 60 minute interview, and stronger than expected US ISM data drove sentiment in the space.

• NZDUSD, despite being the best performing G10 currency, made new lows again overnight after testing the lows in yesterday's Asia session of 0.6050 there was a slight reprieve, before again overnight breaking those levels to trade to a new yearly low of 0.6038. The pair had been trading in the 0.6050/6150 range for the majority of a January and the break and hold below the 0.6050 could signal a further leg down, 20 and 50 day EMA comfortably sit above spot in the 0.6130/6140 range.
• AUDNZD has been pushing lower after starting the week at monthly highs of 1.0756, and currently at 1.0707. The pair has been trading in a trading in a 1.070/1.0850 range all year and has seen multiple attempts at breaking the 1.070 level to no avail, a break and hold below these level could signal a move to mid Oct lows at 1.0650.
• The RBA rate decision is later today while no change to the cash rate of 4.35% is expected, all eyes will be on the RBA Governor Bullock, as she speaks on policy at 1530 local time.
• Finally, note the following option expiry for NZD/USD at the NY cut later: $0.6005(N$703mln)