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NZD/USD Edges Higher, WBC Raises CPI Forecast

NZD
  • NZD/USD has pushed higher after earlier making lows of 0.6144, the pair hit highs of 0.6159 and currently trade there now up 0.13% for the day. The move higher corresponded with WBC NZ raising their 1Q inflation target to 0.8% q/q vs the RBNZ forecast of just 0.4% q/q and CPI at 4.2% y/y
  • Key levels to watch: Initial resistance at 0.6217 (Mar 8 high), a break above opens a move to the 0.6250 area (Jan 15 high). Initial support at 0.6136 (Mar 12 lows), below here, 0.6115/.6120 (100 & 200-day EMA).
  • Option expiries, there are US$1.605b of NZD/USD puts at a strike of 0.6161-0.6185 expiring between Mar 12th and March 15th.
  • Statistics NZ announces review of CPI basket, says CPI basket will be updated in April 2025
  • Looking ahead, RBNZ Gov Orr will again speak to Clients in London, there are no notes expected, while Thursday Reinz House Sales are Due out.

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