- The NZD/USD closed up 0.48% at 0.6239 on Thursday, yields in the belly and longer end of the us tsys curve have risen, weighing on the Japanese yen and risk-on sentiment for equities has provided a firm bid higher beta ccys including the NZD while the BBDXY gave back all the morning's gains to close the session down 0.33%.
- New Zealand's Q2 GDP fell 0.2% q/q (-0.4% expected) and 0.5% y/y (-0.6% expected), indicating a weak economy despite stronger private consumption and a positive contribution from net exports. The RBNZ is expected to continue rate cuts for the rest of 2024 as growth remains sluggish.
- There is no data due out in the region today although NZ's Prime Minister Luxon will speak at a Bloomberg event
- The pair remains in a upward trend and trades comfortably above all moving averages, indicating bullish momentum. Initial resistance is 0.6269 (Sept 19 high) above here cycle highs of 0.6300 becomes the target. Support is 0.6154 (Sep 16 / Weekly Lows) while further below we have the 50-day EMA at 0.6134.
- RBNZ dated OIS pricing was steady on Thursday, there is currently 38.5bps of cuts priced for October or about a 50% chance of a 50bps cut.
- The NZ-US 2yr swap spread rose 6bps to 22bps on Thursday
- Expiries: 0.5980 ($510m) Sep 20
NZD: NZD/USD Edges Higher With Risk-On Tone
Last updated at:Sep-19 21:39By: Sam Hunter
US+ 1
- The NZD/USD closed up 0.48% at 0.6239 on Thursday, yields in the belly and longer end of the us tsys curve have risen, weighing on the Japanese yen and risk-on sentiment for equities has provided a firm bid higher beta ccys including the NZD while the BBDXY gave back all the morning's gains to close the session down 0.33%.
- New Zealand's Q2 GDP fell 0.2% q/q (-0.4% expected) and 0.5% y/y (-0.6% expected), indicating a weak economy despite stronger private consumption and a positive contribution from net exports. The RBNZ is expected to continue rate cuts for the rest of 2024 as growth remains sluggish.
- There is no data due out in the region today although NZ's Prime Minister Luxon will speak at a Bloomberg event
- The pair remains in a upward trend and trades comfortably above all moving averages, indicating bullish momentum. Initial resistance is 0.6269 (Sept 19 high) above here cycle highs of 0.6300 becomes the target. Support is 0.6154 (Sep 16 / Weekly Lows) while further below we have the 50-day EMA at 0.6134.
- RBNZ dated OIS pricing was steady on Thursday, there is currently 38.5bps of cuts priced for October or about a 50% chance of a 50bps cut.
- The NZ-US 2yr swap spread rose 6bps to 22bps on Thursday
- Expiries: 0.5980 ($510m) Sep 20
