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USDCAD TECHS

Needle Still Points South

US TSYS

Yields Bounce as Equities Make New Monthly Highs

AUDUSD TECHS

Heading North

EURJPY TECHS

Bull Rally Accelerates

COLOMBIA

Economists Survey Raises 2021 CPI Forecast To 4.9%

KIWI
KIWI: NZD/USD sits at $0.6404, marginally shy of neutral levels, in the lead-up
to the RBNZ monetary policy decision. The MPC is widely expected to leave the
OCR unchanged. Our preview can be accessed at http://tiny.cc/RBNZFeb2020.
- Risk-on mood lent some support to the kiwi on Tuesday, but most of the gains
registered by NZD/USD was driven by a sell-off in the greenback, which faltered
as Fed Chair Powell highlighted economic risks from the spreading coronavirus.
- A break above the 100-DMA/mid-point of the Oct 1 - Dec 31 rally at $0.6477/80
would expose the 200-DMA at $0.6501. Bears look for a dip under $0.6378, a
three-month low printed yesterday. A break here would open the 76.4% retracement
of aforementioned rally, located at $0.6334.
- RBNZ Gov Orr's post-MonPol press conference may somewhat overshadow a speech
from PM Ardern, scheduled for the same time. Ardern will outline government
policy plans to lawmakers as parliament resumes.
- FinMin Robertson testified to a parliamentary committee earlier this morning,
reiterating that Q1 GDP will be affected by the Wuhan virus.
- On the data front, BusinessNZ M'fing PMI & food price index are due Friday.
MNI London Bureau | +44 203-865-3806 | krzysztof.kruk@marketnews.com
MNI London Bureau | +44 203-865-3806 | krzysztof.kruk@marketnews.com