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NZD: NZD/USD Resumes Sell-Off, Make New Yearly Lows, GDP Tomorrow

NZD
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  • NZDUSD resumed it slide on Tuesday, closing down 0.47% at 0.5755, more than erasing Monday's gains, and making new yearly lows, the pair has now fallen 9.37% since the start of October. The Kiwi saw a small bounce on Tuesday as yields rose following the release of the Half-Year Economic & Fiscal Update, however the move was short lived while overnight, softer equities have weighed on the likes of AUD, NZD and CAD, with the S&P 500 dropping 0.40% and the NASDAQ falling 0.50%.
  • As the NZD/USD continues to make fresh lows, the RSI indictor is holding steady near oversold territory at 35, however it has spent most of the past three months around these levels, the MACD indicator is printing small red bars, however has also held steady the past few sessions
  • Immediate support lies at 0.5700 (round number), a break here could open a larger move lower with the next major support not until the 2022 lows at 0.5500. Resistance levels are seen at 0.5837 (20-Day EMA), a break above here and 0.5900 becomes the target.
  • Global Dairy Trade's average price for whole milk powder fell to $3,890 per ton from $3,984 at the previous auction. The weighted average price for all milk products dropped to $4,148 per ton, with the GDT price index declining by 2.8%.
  • The NZ-US 2yr swap made new yearly lows on Tuesday, hitting -63.5bps before closing at 61bps, we haven't traded at these levels since October 2019
  • Expiries: 0.5615 ($360m), 0.5650 ($400m), 0.5960 ($746.65m) for 18th NY cut
  • The calendar is empty for the remainder of the day, focus will turn to tomorrows GDP data
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  • NZDUSD resumed it slide on Tuesday, closing down 0.47% at 0.5755, more than erasing Monday's gains, and making new yearly lows, the pair has now fallen 9.37% since the start of October. The Kiwi saw a small bounce on Tuesday as yields rose following the release of the Half-Year Economic & Fiscal Update, however the move was short lived while overnight, softer equities have weighed on the likes of AUD, NZD and CAD, with the S&P 500 dropping 0.40% and the NASDAQ falling 0.50%.
  • As the NZD/USD continues to make fresh lows, the RSI indictor is holding steady near oversold territory at 35, however it has spent most of the past three months around these levels, the MACD indicator is printing small red bars, however has also held steady the past few sessions
  • Immediate support lies at 0.5700 (round number), a break here could open a larger move lower with the next major support not until the 2022 lows at 0.5500. Resistance levels are seen at 0.5837 (20-Day EMA), a break above here and 0.5900 becomes the target.
  • Global Dairy Trade's average price for whole milk powder fell to $3,890 per ton from $3,984 at the previous auction. The weighted average price for all milk products dropped to $4,148 per ton, with the GDT price index declining by 2.8%.
  • The NZ-US 2yr swap made new yearly lows on Tuesday, hitting -63.5bps before closing at 61bps, we haven't traded at these levels since October 2019
  • Expiries: 0.5615 ($360m), 0.5650 ($400m), 0.5960 ($746.65m) for 18th NY cut
  • The calendar is empty for the remainder of the day, focus will turn to tomorrows GDP data