NZD/USD Holds Above 0.6100, Consumer Confidence Falls

The Kiwi finished Monday trading down 0.16% at 0.6132, holding just above the 0.6100 mark through the Asian session as mixed Chinese macroeconomic data provided little impetus. The NZD/USD remained under selling pressure due to modest USD strength driven by the Fed’s hawkish outlook and geopolitical tensions, despite a weaker USD later in the session.

• The NZD/USD opened Monday trading at 0.6140 before grinding lower to hit an intraday low of 0.6105, eventually paring most of those losses to close at 0.6130. The pair’s movement was influenced by The BusinessNZ Performance of Manufacturing Index falling to 43.0 for May, the lowest since 2007, while mixed Chinese economic data also contributed to the weakness.
• Key levels to watch: Immediate support is at the 0.6100 (round number support), with strong support in the 0.6080-0.6090 area (50, 100 & 200-day EMAs). On the upside, a breach of the 0.6200 resistance level would be needed to shift momentum, and tests the recent cycle highs of 0.6220 area.
• Earlier, New Zealand 2Q consumer Confidence fell to 82.2 from 93.2.
• The US-NZ 2Y swap rate is 4bps higher at -28bps.
• Option expiries: Upcoming notable strikes include 0.6070 (NZD500m June 19), 0.6080 (NZD462.4m June 20), 0.6100 (NZD320m June 20).
• Upcoming data: Balance of Payments Current Account Balance on Wednesday.