NZD/USD Holds Above 0.6000, FinMin Give Pre-Budget Speech

The Kiwi was unchanged on Wednesday, G10 currencies were relatively stable as markets are awaiting the next macro cue to build momentum in either direction, the JPY however has continued to slide. Earlier, NZ FinMin Willis delivered her pre-budget speech.

• The NZD/USD traded within a 20-pip range again on Wednesday, the pair spent most of the session trading below 0.6000, making an intraday low of 0.5981 before closing the session at 0.6003.
• Key levels to watch: Initial resistance of 0.6044 (May 5 highs) would be needed to test the of 0.6069 (200-day EMA), to the downside a break of 0.5981 (May 8th lows) would open up a test of 0.5973 (20-day EMA) and below here 0.5917 (May 2 lows).
• The US-NZ 2y is down 5bps to -17.75bps
• Earlier, FinMin Willis addressed the economic challenges ahead in her pre-budget speech, emphasizing the need for fiscal responsibility and modest spending, mentioning the economic situation is “challenging for the government books”. She mentioned that budget wouldn't be big-spending, but that it would deliver tax relief for middle and lower-income workers. The budget will be delivered May 30th.
• Option expiries: 0.5930 (NZD729.9m), 0.6020 (NZD559.2m), 0.5900 (NZD453.7m) while notable upcoming strikes are 0.5695 (NZD760m May 14), 0.5690 (NZD760m May 13)
• Looking ahead: BusinessNZ Manufacturing PMI on Friday