NZD/USD Edges Lower On Non-Farms Beat Eyes 0.6000

The Kiwi edged lower on Friday, an initial gap lower occurred on stronger-than-expected US Non-farms data coming in at 303k vs 214k, the currency recovered most of the move lower as we closed out he week. The NZD finished the day down 0.20% vs the USD, after being down as much as 0.67%, while the BBDXY was unchanged at 1242.70. Looking ahead this week focus will turn to RBNZ decision on Wednesday, where the cash rate is expected to be be unchanged at 5.50%

• NZD/USD was close to unchanged as US data was released, before a gap lower as the currency made a low of 0.5986. The pair recovered most of move making a post data high of 0.6020 before finishing the session at 0.6013. As the new weeks gets underway, we have opened a touch lower at 0.6007.
• Key levels to watch: Initial resistant holds at 0.6032 (20-day EMA) a break above here opens a retest of 0.6047 (Apr 4 highs), and further up 0.60876/91 (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 swap made new yearly highs on Friday of 14.5bps, we are just off those levels now at -19.5bps.
• (Bloomberg) RBNZ Seen Pushing Back Against Bets on Early Interest-Rate Cuts - (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.