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Key Resistance Is At 1.2203


Still Range-Bound


Decent Action on Narrow Range Ahead Wed's FOMC

KIWI: NZD/USD bounced late doors Thursday amid a dynamic recovery in U.S. equity
indices & firmer oil prices, which supported commodity-tied FX. The move allowed
the pair to erase earlier losses, registered after a weak jobs report out of
Australia. There was little in the way of local catalysts to drive the kiwi.
- We had some NZ data out this morning. REINZ house sales plunged by 78.5% Y/Y
last month, while BusinessNZ M'fing PMI tumbled to 26.1.
- NZD/USD sits at $0.6000, little changed. A drop below Thursday's trough at
$0.5957 would open Apr 23 low of $0.5911. Bulls target May 11 high of $0.6156.
- Just worth noting that New Zealand has backed calls for an independent
investigation into the origin of the coronavirus pandemic via its Health
Ministry spox, in a move that may set the nation at loggerheads with China. Dep
PM Peters spoke to the same effect a couple of weeks back, insisting that his
words won't draw China's retaliation.
- Worth watching Chinese activity indicators today. Next week's data highlights
in NZ include services PMI (Monday), PPI (Tuesday), FPI (Wednesday), credit card
spending (Thursday) & retail sales (Friday).
MNI London Bureau | +44 203-865-3806 |