Rebounds As Dollar Sees Broad Based Losses, Q1 Building & ToT On Tap

The NZD was the third best performer within G10 FX for Thursday's session, modestly trailing the AUD and CAD modestly. The Kiwi rose 0.81% for the session, with all of the gains coming post the Asia close. From lows around 0.5990 the pair got back near 0.6080, fresh highs for the week. We now sit slightly lower, last around 0.6070. A May 25th high came in close to 0.6115, while the simple 200-day MA is around 0.6150, in terms of topside targets.

• Broad based USD weakness aided the NZD, with the BBDXY off 0.60%, as US yields pulled back amid weaker unit labor cost data and a slump in the prices paid component from the ISM survey. The 2yr finished up at 4.34%, down from intra-day highs near 4.46%.
• Equity sentiment was better (SPX +1%), aiding NZD outperformance against lower beta plays, with NZD/JPY rebounding back above 84.00, the simple 200-day MA is nearby at 84.31.
• Commodity indices also rose, which aided the A$ slightly more, but the AUD/NZD cross sits slightly down from Thursday session highs, last near 1.0825/30.
• On the data front we have volume of building work for Q1. The market expects a -2.0% outcome, -1.6% was prior. NZ terms of trade of Q1 is also out -1.6% is the forecast against a prior 1.8%.