NZD/USD Edges Higher, Tests 20-day EMA, RBNZ Decision Tomorrow

The Kiwi edged higher on Monday, it was a quiet day for Economic data, while front-end US yields pushed higher reaching near YTD highs. The NZD/USD tested initial resistance (20-day EMA) at 0.6034 and finished the session up 0.32% at 0.6032, while the BBDXY finished the session down 0.14% at 1,241.02.

• NZD/USD looked to benefit from a brief and small rally in US rates futures on Monday, as the pair hit a high of 0.6039 breaching initial resistance, however met with selling pressure to close the session out just below resistance at 0.6032 where we trade as Asia logs in.
• Key levels to watch: Initial resistant holds at 0.6034/0.6039 (20-day EMA/Apr 8 high) a break above here opens a retest of 0.6047 (Apr 4 highs), and further up 0.6075/90 (50- / 100-day EMA). Initial support is at 0.5985 (Apr 5 low) a break here would open up a retest of 0.5940 (Apr 1 / Nov 17 lows).
• The US-NZ 2y is 1.5bps lower at -18bps, just off highs made Friday of -14.5bps
• (The Times) New Zealand tightens entry rules to stop ‘unsustainable’ immigration - (See link)
• (Bloomberg) New Zealand 1Q Home-Building Costs Rise 0.5%, CoreLogic Says - (See Link)
• Option expiries: there are no large strikes today, with upcoming notable strikes being Upcoming notable strikes: 0.5955 (NZD1.22b April 11), 0.5850 (NZD625m April 10), 0.6105 (NZD386m April 11).
• Looking ahead, calendar is light on until the RBNZ decision on Wednesday.