NZD/USD Fails To Break 0.6200, Before Trending Lower, Dairy Prices Rise

The Kiwi finished Tuesday's session down 0.26% at 0.6177 while the BBDXY finished little changed at 1,252.41. The currency made three month highs during the Asian session before failing to test resistance and selling off. Overnight US had JOLTS Job Openings come in below expectations which saw rate cut expectations gain.

• NZD/USD was lower on Tuesday after failing to really test the 0.6200 resistance. The pair still holds above all moving averages, while RSI hovers near overbought territory MACD has steadied. We have opened little changed changed this morning at 0.6176.
• Key levels to watch: Initial resistance 0.6200 (round number) while above here we then eye a test of 0.6220 (March 8 high). Initial support is now 0.6111 (20-Day EMA) a break here would open a move to 0.6083 area (May 23rd lows)
• The average price for whole milk powder increased 1.7% to $3,478 from $3,408 at the GDT auction, while the weighted average price for all milk products reached $3,824 per ton, also marking a 1.7% rise in the GDT price index.
• The US-NZ 2y is 5bps lower at -29bps
• Option expiries: no nearby strikes today, upcoming strikes include 0.6115 (NZD699m June 7), 0.6100 (NZD410m June 7) 0.6050 (NZD518m June 6).
• Looking ahead: N.Z. Government 10-Month Financial Statements at 8:00am, and 1Q Terms of Trade Index at 8:45am EAST