NZD/USD Remains Rangebound, Tests 100-Day EMA

The Kiwi ended Tuesday's trading session on a positive note, emerging as the strongest performer among G10 currencies. Initially, it started the session with some weakness. The release of higher-than-anticipated US PPI figures, particularly the ex-food and energy prints (0.5% vs exp 0.2% M/M, and 2.4% vs exp 2.3% Y/Y), led to a strengthening of the USD, causing the NZDUSD pair to dip below 0.6000. However, this trend quickly reversed as the PPI report revealed negative revisions to March data and limited implications for PCE.

• The NZD/USD finished Tuesday's session up 0.38% at 0.6041 and near intraday highs. The pair tested initial resistance of 0.6044 late in the session but was unable to break above, the 14-day RSI continues to tick higher now at 58, while the MACD indictor is steady. In early trading, we are little changed at 0.6040.
• Key levels to watch: Initial resistance of 0.6044 (May 5 highs/100-day EMA) would be needed to test the of 0.6068 (200-day EMA), to the downside a clear break of 0.6000 (round number support) would open a move to 0.5994 (20-day EMA) and below here 0.5917 (May 2 lows).
• The US-NZ 2y is down 6bps at -16bps
• Option expiries:0.5915 (NZD731.4m), 0.5945 (NZD439m), 0.5455 (NZD360m) 15th NY Cut while notable upcoming strikes are 0.5880 (NZD1.25b May 17), 0.5885 (NZD950m May 16), 0.6000 (NZD729.3m May 16)
• Looking ahead: Non Resident Bond Holdings on Thursday