NZD/USD Breaks Below 0.6100, ANZ Commodity Prices Up Shortly

NZD trended lower post the Asian session on Monday, breaking the 0.6100 level to close the day at 0.6091 down 0.26% vs USD. The BBDXY finished the day down 0.06%

• NZD/USD broke 0.6100 towards the end of the Asian session on Monday before a brief reversal, however was unable to hold back above and broke back below the .6100 level, closing the day at 0.6091. Ranges were very tight with the pair trading in just a 15 pip range for the remainder of the trading session.
• Key levels to watch, initial support at 0.6080 (Mar 1st) below here 0.6064 (Jan 23 lows) while a break of those levels opens up a retest of the yearly lows at 0.6038. To the upside, initial resistance at 0.6112 (March 4 highs) above here and break above opens a move to 0.6130/35 area (20 & 50-Day EMAs).
• Leveraged funds long positioning cut to the lowest since week ending Jan 16, while asset managers positions turns long for the first time since Dec 2022. The net NZD position continues to improve (had seen largest net additions in recent weeks) with 3.4k contracts added last week, putting the net long position at 10,057 contracts, or 20.8% of open interest - this is the largest net long since early February last year
• Earlier Auckland Feb Average house prices rose 3% MoM, while NZ treasury published the Seven-Month Budget which has shown the deficit was NZ$71m narrower than the expected NZ$3.73b gap projected in the half-year fiscal update
• Looking ahead: Feb ANZ Commodity Prices at 11.00am AEST