NZD/USD Holds Above 0.6000, Business Confidence Shortly

The Kiwi was little changed on Wednesday, the NZDUSD hit daily lows of 0.5988 during the Asian session however recovered and hovered around the 0.6000 for the remainder of the day. There was little in the way of data, as we look ahead NZ Business Confidence data is due out shortly, while focus will be on US GDP data later today.

• NZD/USD has opened Thursday trading at 0.6004, unchanged from the prior day. The pair traded in a tight 15-pip range post the Asian session Wednesday making lows of 0.5994 and highs of 0.6010.
• Key levels to watch: Initial support at 0.5986 (Mar 25 lows), below here 0.5941 (Nov 17 lows). Initial resistance lies at 0.6031 (Mar 27 highs), further up 0.6050 (Mar 22 high), a break above opens a move to the 0.6070 (20-day EMA).
• The NZ-US 2y swap is 1bp lower at -24bps
• Upcoming expiries: US$570m put with a 0.600 strike for March 27th NY cut.
• Earlier, ANZ consumer Confidence showed a large drop in March coming in at 86.4 y/y vs 94.5 y/y in Feb
• Reserve Bank of New Zealand Governor Adrian Orr, speaking in an interview with Radio New Zealand, noted that aggregate demand is slowing, core inflation pressures are easing, and inflation expectations are returning to target. He expressed optimism about seeing low and stable inflation on the horizon, which would potentially lead to more normalized interest rates in the future.
• Looking ahead, ANZ Business activity outlook and confidence at 11.00am AEST