NZD/USD Unchanged Post NZ Budget

The Kiwi finished Thursday's session unchanged at 0.6115 while the BBDXY finished down 0.23% at 1,252.18. The NZD was the worst performer on Thursday, after initially selling off post the release of the budget and trading back below 0.6100. US yields headed lower late during which saw the USD then sell-off.

• NZD/USD continues to trade rangebound, we tapped 0.6090 overnight before paring losses, lower US yields help support the currency. The pair has opened the Friday session unchanged at 0.6115. The 14-day RSI is unchanged at 59.5, while the MACD is showing decreasing green bars.
• Key levels to watch: Initial resistance of 0.6170 (May 28th highs) above here we target the 0.6200/20 (round number/ March 8 high), while initial support is now 0.6889 (May 30 lows) a break here would open a move to 0.6083 area (May 22nd lows/ 20-day EMA).
• (MNI): The new NZ government presented its first budget and delivered the income tax cuts it promised in 2023’s election. Finance minister Willis said that the cuts worth $14.7bn over 4 years will be offset fully by “savings and revenue initiatives” thus not adding to inflationary pressure. Slower growth has contributed to the deterioration in the budget position. (See link)
• New Zealand FinMin, Willis earlier spoke on radio where she said the tax cut package was disinflationary, and that they were RBNZ friend not Foe.
• The US-NZ 2y is 7bps higher at -17.5bps
• Option expiries: 0.6100 ($275.41m) May 31 NY cut
• Looking ahead: New Zealand to Sell 7yr, 10yr & 15yr Bonds