Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
NZD
In the wake of yesterday's hawkish 50bp hike by the RBNZ and softer than expected US data, rate differentials, observed via 2 year swap rates, have widened and now sit a touch below levels seen at the height of the SVB crisis.
- Rate differentials have widened from ~64bps early last week to now sit at ~113bps. We were as wide as 124bps in mid March over concerns about the US banking system.
- Over the last week NZD/USD has risen ~2%, breaking above its 200-Day EMA in the process. Yesterday, in the immediate aftermath of the RBNZ decision, the pair was unable to clear the high from 14 Feb at $0.6391.
- Bulls look to break this level, from here they can target 2023 highs at $0.6538.
- Bears first look to break 200-Day EMA ($0.6266) to turn the tide.
Fig1: NZ US 2 Year Swap vs NZD/USD Daily Spot
Source: MNI/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok