NZD/JPY Extends Gains After Westpac Updates OCR Forecast

NZD/JPY popped higher in early trade as Westpac changed their RBNZ call, NZ data suggested that local jobs market continues to recover, while JPY faltered on the back of light risk-on flows.

• Westpac said that they don't expect any cuts to the OCR in the foreseeable future, scrapping their earlier call for two 25bp cuts in May and August.
• BNZ/SEES report noted that NZ job advertising continued to recover, while Statistics NZ's experimental weekly data series pointed to a surge in paid jobs.
• JPY underperforms all of its G10 peers as participants shy away from safe haven FX, in the wake of yesterday's peaceful presidential transition in the U.S.
• The rate sits +20 pips at Y74.46, with bulls looking for the third consecutive day of gains. A break above the round figure/Jan 14 high at Y75.00/05 would open up Jan 8 cycle high of Y75.58. Bears need a slide through Jan 18 low/50-DMA at Y73.65/61 before targeting Dec 21, 2020 low/23.6% retracement of the May 15 - Jan 8 rally at Y72.72/71.