RBNZ Takes Focus

Tuesday saw the kiwi shake off its initial weakness, reportedly linked to pre-RBNZ positioning. NZD/USD pushed higher in European & U.S. hours amid broad-based USD sales, with the greenback hit by above-forecast domestic CPI report.

• NZD/USD 1-month ATM implied volatility fell to the lowest levels in more than a year on Tuesday. It last sits at 8.75%, just above Tuesday's low.
• Opposition leader Collins said she is confident that she still has the support of her party, after NZ Herald suggested that her predecessor Bridges may attempt to mount a new leadership bid.
• Agriculture Min O'Connor said that exports of livestock by sea from New Zealand will be phased out over the transition period of no more than two years.
• NZD/USD last trades at $0.7055, little changed on the day. A move through the $0.7069/70 area would open up the 100-DMA at $0.7147. Conversely, losses past Apr 7 low of $0.6997 would expose Apr 1/Mar 25 lows of $0.6946/43.
• The RBNZ's Monetary Policy Review is due today. Virtually all analysts expect the MPC to leave the OCR unchanged. Our comprehensive preview is available here.
• Looking further afield, food price index comes out Thursday, while BusinessNZ M'fing PMI hits Friday.