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NZD/USD Above 20-day EMA Ahead of RBNZ Tomorrow

NZD
  • NZD/USD moved higher as the AUD lost ground on weaker AU Consumer Confidence data. The pair traded up to a high of 0.6049 breaking above weekly highs of 0.6047, however has erased some of that move to now trade back at 0.6041 although still holding above the 20-day EMA at 0.6035.
  • The pair has been been trading below 0.6050 since Mar 21, a break back above it would open up a move to 0.6076 (50-day EMA), and then a retest of US CPI highs of 0.6100 area
  • The NZ-US 2yr swap has moved lower again down another 2bps to -20.75bps vs highs of 14.5bps from Friday, while 1 week volatility has spiked over the past week rising from 6 to 10 back at levels from late Jan.
  • Upcoming notable strikes: 0.5955 (NZD1.22b April 11), 0.5850 (NZD625m April 10), 0.5750 (NZD610m April 12)
  • Looking Ahead, all eyes on the RBNZ decision tomorrow - See MNI RBNZ preview here

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