Free Trial

NZD/USD Tracks Recent Ranges, RBNZ Pushes Back Against Rate Cut Timing


Post the Asia close, NZD/USD largely stuck to recent ranges. We got close to 0.6070, but moved back sub 0.6040, late in NY trade. We currently track at 0.6040/45, with the kiwi having lost 0.20% for Tuesday's session. The NZD underperformed GBP and JPY, but was firmer against some higher beta plays like AUD, albeit at the margins.

  • The NZ data calendar has the ANZ May activity and business confidence prints on tap today. The prior reads were -7.6 for activity and -43.8 for confidence. Elsewhere, the Reserve Bank of New Zealand’s Official Cash Rate has reached a contractionary level at 5.5% and will likely stay there until mid-2024, despite market expectations for an earlier cut, RBNZ Chief Economist Paul Conway told MNI, see this link for more details.
  • In the cross asset space, we had a further pull back in US yields post the Asia close, with the 2yr off 11bps to 4.45% for Tuesday's session. US data was mixed as survey prints point to downside risks for the ISM print, although consumer confidence rose. This was offset by softer commodity indices and a less supportive equity market backdrop.
  • NZD/JPY was on the backfoot, getting to lows around 85.30/35, which coincides with the simple 200-day MA, we sit slightly higher now, last near 84.50. The AUD/NZD sits off recent highs, last near 1.0780.

To read the full story


MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.