NZD/USD Grinds Higher, RBNZ Governor Addresses Inflation at Economics Forum

Post the Asia session on Thursday G10 currencies drifted higher against the USD ahead of a busy session for US Data. The NZD/USD is 0.35% higher, while the BBDXY is 0.35% lower. RBNZ's Orr spoke earlier at the Economics forum.

• NZDUSD drifted higher post the Asian session on Thursday, breaking out of the tight range (0.6080/0.6090) the pair traded in for the day, as USD weakness appeared before US data was released. Post US data NZD spiked, hitting a high of 0.6127 before ultimately reversing and closing the session back at 0.6105. The NZDUSD has been range bound for the past month trading between 0.6040 and 0.6160. As a break below 0.6040 (lows from Feb 5th) could signal further weakness, potentially opening a move to 0.6000 (lows from Nov 22nd), while to the upside a break above 0.6160 opens a move to 0.6200 (Highs from Jan 16th). Currently, the 20 and 50-day EMAs are positioned at 0.6115/6135.
• AUDNZD traded lower post Asia Trading on Wednesday, reaching new daily lows of 1.0648 before rebounding during the US session to close trading at 1.0683 up 0.16% for the day. Technical Support holds at the 1.0600 area, while initial resistance lies at 1.0700/05 (20-day EMA), with the 50-day EMA above at 1.0740.
• RBNZ Governor Orr spoke earlier at the Economics forum around persistent inflationary pressures, emphasizing the importance of maintaining the 2% inflation target, with a focus on anchoring inflation expectations. He highlighted the need for a flexible approach and stated that more work is required to anchor inflation expectations at the desired level.
• • On the Data front NZ Manufacturing PMI was out earlier coming in at 47.3 vs 43.1 previously, and data also has shown NZ population has risen 2.8% YoY to 5.3m as of Dec 31.
• Looking ahead the local calendar is empty today while the US has Housing starts, PPI and UofM Sentiment data out