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NZD/USD Heads Higher Post FOMC, GDP Up Next

NZD

NZD continued its trend lower post the Asia session on Wednesday, making new YTD lows of 0.6025, before recovering slightly heading into FOMC. The FOMC decision caused broad USD weakness with the BBDXY trading off 0.36%, while the kiwi recovered some of its recent losses closing the day up 0.44% at initial resistance of 0.6080. Looking ahead NZ has GDP data out in about 15 minutes.

  • NZD/USD has opened Wednesday trading at 0.6080 back at highs from March 18, after making highs post FOMC of 0.6085. NZ GDP data is due out shortly with expectations of a 0.0% y/y vs -0.6% the prior quarter.
  • Key levels to watch: A break and hold back above 0.6080 (Mar 18 lows) would open up a move to 0.6112 (200-day EMA) and further up 0.6133 (Mar 15 highs). Initial support at 0.6025 (Mar 120lows/YTD lows), a break here would open up a test of 0.6000 (Nov 23 lows).
  • Earlier, NZ will decide on a select committee banking inquiry in August, Feb average residential property asking price rose 0.7% y/y to NZ$876,625 according to trade me listings. While Fonterra retains their 2023-24 milk price midpoint at NZ$7.80/kg
  • Looking ahead: GDP data out shortly, while Trade Balance is due Friday

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