NZDUSD Makes Fresh 5 Week Highs, Eyes Turn to US Data

NZD strengthened post-Asian session, emerging as a top G10 performer, up 0.29% and second only to SEK. Broader USD weakness during the US session contributed to NZD reaching fresh monthly highs, with BBDXY down by 0.10%.

• NZDUSD experienced a positive day, breaking above initial resistance at 0.6160 to reach 0.6191, 5 week highs. However, it lost some momentum by the end of the day, closing at 0.6163. Weaker US equity trends coincided with the USD finding some support, which helped trim NZD gains. The current spot is above the 20 and 50-day EMAs at 0.6125/0.6135.
• AUDNZD continued its downward trend after the Asia session on Tuesday, touching a low of 1.0614. It closed the day just off those lows at 1.0623, down 0.11%.
• Support for AUDNZD holds at 1.0600, the yearly lows from February 9th. The 20 and 50-day EMAs are at 1.0690/1.0730.
• Fonterra GDT price index rose 0.5% overnight, with Whole Milk Powder falling to $3,388 from $3,463 per ton. NZ 4Q PPI data released showed PPI output rising 0.7% vs. 0.8% previously, and PPI Input rose 0.9% vs. 1.2% previously.
• On Wednesday, NZ Finance Minister Nicola Willis challenged the perception of the country's low net debt position, emphasizing the vulnerability of New Zealand's small, exposed trading economy to shocks, advocating for a conservative debt position.
• Looking ahead, focus will be on AU WBC Leading Index and Wage Price Index, as well as US FOMC minutes, Job Claims, and Existing Home Sales.