NZD Steady, AUD/NZD Dips On 'Conservative' China 2023 Growth Target

NZD/USD dips sub 0.6200 were supported late last week. We finished the NY session on Friday close to 0.6220 and we currently track around this level in the first part of trade today. The simple 100-day MA is near by (0.6223), while the 200-day MA is lower at (0.6176). NZD/USD remains sub all key EMAs though.

• The early tone to the USD today is firmer, with AUD off around 0.3%, with China's relatively conservative 'around 5%' growth target for 2023 announced yesterday as the NPC kicked off, weighing at the margins.
• The AUD/NZD cross is back to 1.0850/55, after ending last week around 1.0880.
• We may see NZD sentiment impacted at some stage today, particularly if we see any flow on to regional equity sentiment.
• On Friday, the lead was quite firm though from global equities, with the SPX up 1.61%. The DYX shed nearly 0.5%, while global commodity prices generally rose.
• On the data front, early doors is volume of building work for Q4. There is no consensus, but the prior print was +3.8%. Later on, Feb ANZ commodity prices are due. The prior print was -1.0%.
• Neither release is expected to shift the sentiment needle.