NZD/USD Tests 0.6200, ANZ Sees RBNZ Cutting in Feb

The Kiwi finished Thursday's session up 0.10% at 0.6199, lagging the majority of G10 currencies, the BBDXY finished little changed at 1,252.35 after a late rally into the close. ANZ now sees RBNZ cutting in Feb from May (BBG), there has been little reaction to the currency.

• NZD/USD did test initial resistance early on Thursday before a reversal saw the currency trade back below 0.6200, with upside moves capped by a large call option, strike at 0.6200 with a FV of NZ$1.53b expiring June 12th.
• The pair has opened early morning trading just above closing levels at 0.6199, the 14-day RSI is hovering near overbought territory at 68.5, while MACD indictor has started to show decreasing green bars.
• Key levels to watch: Initial resistance 0.6218 (Feb & March Highs), above here 0.6278 (Jan 12 highs). Initial support is now 0.6128 (20-Day EMA) a break here would open a move to 0.6083 area (May 23rd lows)
• The US-NZ 2y is 2bps higher at -32.5bps
• Option expiries: 0.6115 (NZD699m), 0.6100 (NZD410m), 0.6050 (NZD300m), upcoming strikes include 0.6200 (NZD1.53b June 12), 0.6100 (NZD990.5m June 12), 0.5920 (NZD386m June 11)
• Earlier, NZ signed three Indo-Pacific Economic Framework (IPEF) agreements to boost investment, grow New Zealand’s digital and green economies, and increase trade with IPEF partners. These agreements focus on anti-corruption, labor and tax standards, and creating a transparent, reliable investment ecosystem to aid Kiwi businesses and aim to double New Zealand's export value in 10 years
• Looking ahead: Mfg Activity at 08:45 AEST, while China will release Trade Balance Data at some point throughout the day