NZD/USD Edges Higher As US PMIs Miss, NZ Trade Balance Up Shortly

The Kiwi edged higher on Tuesday, although underperformed most other G10 currencies as the USD slipped on the back of weaker than expected US PMI data, yields traded lower and risk assets benefited helping the likes of EUR, AUD & NZD. The BBDXY closed 0.37% lower at 1,259.54.

• The NZD/USD traded from 0.5913 to a weekly high of 0.5948 as US PMI data was released before finishing the session at 0.5932. The pair remains in a downtrend as it continues to trade below the 20, 50, 100 & 200-day EMA's, the 14-day RSI has ticked up again now at 43, up from 31 this time last week, while the MACD is showing diminishing red bars, signally a protentional turnaround.
• Key levels to watch: Initial support is 0.5900 (round number support) a move below here would open a retest of 0.5852 (Apr 19 lows). Initial resistance is 0.5950 (Apr 15 high), above here the 0.6010 (Apr 12 highs) becomes a target.
• The US-NZ 2y is down 2bp to -17.5bps
• Option expiries: No notable strikes for Apr 24, while notable upcoming strikes are 0.6100 (NZD605.4m April 26), 0.5940 (NZD385.7m April 26), 0.5840 (NZD332.2m April 29)
• Looking ahead: Next data released will be Trade Balance at 8:45am AEST