RBNZ Loosens Dividend Restrictions, NZ Farmers Turn Optimistic

NZD/USD charted an outside bearish candlestick Tuesday, as quarter-end demand for the greenback pulled the rug from beneath the pair. As a result, the rate erased gains registered in Asia-Pac hours amid a touted stop loss induced short-squeeze.

• The RBNZ have eased some of the dividend restrictions imposed on banks amidst the Covid-19 pandemic. Lenders will now be allowed to pay out no more than half of their earnings to their shareholders. The 50% restriction will be left in place through mid-2022, "at which point the Reserve Bank intends to normalise the dividend settings by removing the restrictions entirely."
• Rabobank circulated their quarterly survey of farmer confidence, noting that Q1 saw NZ farmers turning net optimistic about the economy, with most citing rising commodity prices as the key factor.
• The rate last sits at $0.6985, a touch higher on the day. A break above Mar 30 high of $0.7034 would bring the 100-DMA at $0.7135. Bears look for a slide through Mar 25 low of $0.6943, towards the 200-DMA at $0.6880.
• New Zealand's final ANZ Business Confidence comes out at the top of the hour. The consumer confidence counterpart is due tomorrow, while CoreLogic House Price Index is expected at some point this week.