NZD/USD Edges Higher on Softer US PPI, Stronger Equities Markets

The Kiwi edged higher throughout Thursday, the USD saw some weakness on softer US PPI. Equity markets rallied on the data released helping the NZD which finished the session up 0.40% at 0.5997, while the BBDXY closed up 0.06% at 1250.83. BusinessNZ PMI, Food Prices and Card Spending data will be released this morning

• The NZD/USD reached a high of 0.6015 post US PPI, before erasing the entire move to make intraday lows of 0.5970, just off the post CPI lows of 0.5966 as equities briefly sold off before rallying into the close and supporting the NZD.
• Key levels to watch: Initial support is at 0.5966 (Apr 10 lows), a break here would open a move to 0.5940 (Apr 1 & YtD lows). Initial resistant is at 0.6047 (Apr 4 highs), above here 0.6084 (Apr 10 highs) a break here would open a move to 0.6024 (20-day EMA).
• The US-NZ 2y is just off multi-year highs of 5bps, now at -13.5bps
• (Bloomberg) Fonterra Raises 12-Month Whole Milk Powder Auction Volumes (See link)
• Option expiries: 0.5955 (NZD1.3b), 0.6105 (NZD386m), 0.5821 (NZD356m) Apr 11 NY cut. Upcoming notable strikes: 0.5750 (NZD610m April 12), 0.6050 (NZD550.4m April 12), 0.6000 (NZD330m April 12)
• Looking ahead: BusinessNZ PMI, Food Prices and Card Spending data