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NZD/USD Fails To Beak Above 0.6200, BusinessNZ PMI & Food Prices Shortly

NZD

The Kiwi finished Thursday trading down 0.26% at 0.6169, while the BBDXY climbed 0.09% after dipping to the day's low following PPI data. The NZD/USD has been struggling to gain traction due to a recovering US dollar and data suggesting continued weakness in consumer spending.

  • The NZD/USD fell from highs around 0.6220 late on Wednesday as a hawkish US Fed dot-plot revision drove a broad recovery of the US dollar. The pair briefly rallied to 0.6200 on US PPI data on Thursday before quickly paring gains. The pair has opened in line with closing levels at 0.6170 to start trading on Friday.
  • Key levels to watch: Initial resistance 0.6222 (Feb 22 highs), above here 0.6278 (Jan 12 highs). Initial support is now 0.6136 (20-Day EMA) a break here would open a move to 0.6080-90 area (May 23rd lows/ 50, 100, 200-day EMAs).
  • Thursday's card spending data showed a 1.1% MoM and 1.6% YoY decrease in electronic card transactions in May, marking a fifth consecutive decline. Economists at ASB Bank highlighted that consumers are pulling back on spending due to higher living costs and elevated interest rates, expecting weak consumer spending to continue through the year.
  • The US-NZ 2y swap rate is 7bps lower at 35.50bps.
  • Upcoming data: New Zealand May BusinessNZ Manufacturing PMI at 0830 AEST and New Zealand May Food Prices at 0845 AEST.
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The Kiwi finished Thursday trading down 0.26% at 0.6169, while the BBDXY climbed 0.09% after dipping to the day's low following PPI data. The NZD/USD has been struggling to gain traction due to a recovering US dollar and data suggesting continued weakness in consumer spending.

  • The NZD/USD fell from highs around 0.6220 late on Wednesday as a hawkish US Fed dot-plot revision drove a broad recovery of the US dollar. The pair briefly rallied to 0.6200 on US PPI data on Thursday before quickly paring gains. The pair has opened in line with closing levels at 0.6170 to start trading on Friday.
  • Key levels to watch: Initial resistance 0.6222 (Feb 22 highs), above here 0.6278 (Jan 12 highs). Initial support is now 0.6136 (20-Day EMA) a break here would open a move to 0.6080-90 area (May 23rd lows/ 50, 100, 200-day EMAs).
  • Thursday's card spending data showed a 1.1% MoM and 1.6% YoY decrease in electronic card transactions in May, marking a fifth consecutive decline. Economists at ASB Bank highlighted that consumers are pulling back on spending due to higher living costs and elevated interest rates, expecting weak consumer spending to continue through the year.
  • The US-NZ 2y swap rate is 7bps lower at 35.50bps.
  • Upcoming data: New Zealand May BusinessNZ Manufacturing PMI at 0830 AEST and New Zealand May Food Prices at 0845 AEST.