Pressure Extends AFter RBNZ Signals Tightening Cycle Concluded

NZD/USD prints at $0.6105/10, the pair fell ~2.2% yesterday printing its lowest level since mid-March.

• Pressure seen in the aftermath of yesterdays RBNZ monetary policy decision extended through the European and NY sessions.
• The pair broke support at $0.6182 and losses extended with NZD/USD briefly dealing below $0.61 before support came in ahead of the low from 8 March at $0.6085
• Bears target a break of the low from 8 March at $0.6085, a break through here opens $0.60 round number resistance. Bulls first look to target $0.62 to turn the tide.
• AUD/NZD rose ~1%, the cross printed its highest level since 15 May and sits above its 20-Day EMA ($1.0683). The next upside target is the 200-Day EMA ($1.0830).
• RBNZ Gov. Orr noted this morning that rates are restrictive and well above neutral. He said economic growth and inflation are weaker than expected and that the bank retain policy optionality if new data emerges.
• Fonterra narrowed its Farmgate Milk Price range for 2022/23 to $8.10-$8.30/kgMS, with demand expected to gradually strengthen in FY 24 as China's economy continues to recover. Link here.
• Cross asset wise; S&P500 fell 0.7% as the impasse over the US debt ceiling continued. 2 Year US Treasury Yields were 11bps firmer and BBDXY was 0.2% higher.
• The domestic data calendar is empty today.