NZD/USD Edges Higher, Milk Prices Rise

The Kiwi was higher on Tuesday, largely driven by a weaker USD, weaker durable goods data, poor revisions offset the slightly better February JOLTS job openings, while CFTC data showed covering positioning as of the Tuesday close, indicating markets swung their net USD position short for the first time since 2021. The NZD/USD finished 0.30% higher, while the BBDXY finished up 0.14%.

• NZD/USD has opened Wednesday trading at 0.5971, just below Tuesdays intraday high of 0.5973 post US data. There is little on the NZ calendar today, later tonight S&P PMI data will be the focus
• Key levels to watch: Initial support at 0.5940 (Apr 1 / Nov 17 lows), below here 0.5900. Initial resistance lies at 0.6000, a break and hold above here 0.6039 (20-day EMA).
• The US-NZ 2y swap is back at Sept 2022 levels at -16.4bps
• Upcoming expiries: US$260m puts with a 0.6000 strike for Apr 2nd NY cut.
• Earlier, Fonterra GDT Price Index rose 2.8% from -2.8% prior and Milk Powder Price Index rose 3.4%. While the US has lifted a ban on some NZ fish exports, which had cost about NZ$2b in exports.
• Looking ahead, CoreLogic House Prices due out later tonight.