NZD/USD Edges Lower Post GDP Data

The Kiwi finished Thursday trading down 0.21% at 0.6120, in the upper half of the G10 currencies, with the BBDXY up 0.24% for the day. The NZD/USD experienced volatility, initially rising to 0.6148 on slightly better-than-expected GDP data, but gains were swiftly erased.

• Post the initial spike on the back of GDP, the NZD/USD slowly trading lower throughout the session making a session low of 0.6112, with the pair now back below the 20-day EMA, the 14-day RSI is below 50, while MACD is showing negative bars.
• Key levels to watch: Immediate support is at the 0.6085-0.6095 area where the 50, 100, & 200-day EMAs currently sit. A break below this could open a test of 0.6000. On the upside, resistance is seen near 0.6145, with a break above potentially leading to a retest of 0.6200.
• New Zealand's Q1 GDP grew by 0.2%, surpassing the expected 0% and lifting the year-over-year growth to 0.3%. However, per capita GDP declined for the sixth consecutive quarter.
• The NZD faces increasing recession risks, with Chief Economist Paul Conway highlighting that while inflation may decrease, the timeline is uncertain, maintaining a cautious outlook among traders.
• The US-NZ 2y Swap is 4bps lower to 30.5bps
• Upcoming notable option strikes include 0.5500 (NZD320.7m June 25).
• The calendar is empty today