Outperforms, AUD/NZD Lowest Level Since January, Terms of Trade On Tap

NZD/USD prints at $0.6250/55, up ~1.1% in yesterday's trading. The pair was the strongest performer in G-10 space at the margins.

• Kiwi firmed through the European session as the impact of the stronger than expected Chinese PMI lingered, the NZD/USD rallied ~1.8% from trough to peak. Resistance was seen at the 20-Day EMA.
• Rising US Yields after Atlanta Fed President Bostic said rates need to rise about 5% and be left there well into 2024 and a stronger than forecast Prices Paid component of the ISM survey saw gains capped in the NY session.
• Bulls now target high from Feb 14 ($0.6390), a break through there opens 2023 highs at ($0.6538). Bears target low from Feb 27 ($0.6131).
• AUD/NZD fell, printing its lowest level since late January, as yesterdays weak Australian data weighed. The cross is dealing a touch above the $1.08 handle.
• Cross asset wise flows were mixed; Bloomberg Commodity Index rose ~1.1%. DXY fell ~0.4% and S&P500 also fell, down ~0.5%. 10 Year US Treasury Yields were firmer, up ~7bps.
• On the wires today we have Q4 Terms of Trade, there is no estimate the prior read was -3.4%.