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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
NZD/USD is ~2% lower since briefly dealing above its 200-Day EMA on Friday. The SVB inspired rate volatility saw NZ-US rate differentials, observed via 2 year swap rates, print a cycle high before moderating this week.
- Rate differentials now sit at +74bps, having dealt as wide as ~120bps last week. This comes ahead of the Fed's meeting, with a full 25bps hike not priced in (close to 21bps implied by OIS markets).
- NZD/USD has fallen below the 20-Day EMA and sits a touch below the $0.62 handle in early dealings today.
- Bears now target 2023 lows at $0.6085, a break through there opens up $0.60 round number support, see the chart below.
- Bulls first look to break 200-Day EMA ($0.6264) to turn the tide.
Fig 1: NZD/USD Daily Spot, EMAs
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.
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