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Outperforming, AUD/NZD Threatening Fresh Lows

NZD

NZD/USD prints $0.6122, ~0.3% firmer in Asian trade. The Kiwi is the best performer in G-10 space at the margins.

  • NZD has shrugged off a widening trade deficit this morning as a rally in Chinese property stocks, amid fresh regulatory support, spills over into a wider risk on tone generating demand for NZD. DXY is down ~0.2% and e-minis up ~0.2%
  • AUD/NZD is re-testing yesterday's lows on NZD outperformance. The cross is currently printing NZ$1.0808 with NZD bulls targeting 1 April low at NZ$1.0774.
  • Expectations for tomorrow's RBNZ meeting haven't shifted a great deal from earlier, with an implied rate around 4.19%. Front end bond yields are higher, the 2yr up to 4.37%, +6.5bps up for the session.

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