Snapshot: NZD/USD trades at 0.5908, up 0.15% on the session. The Kiwi is finding support as markets reassess the RBNZ’s easing cycle following recent hawkish signals and stubbornly high inflation. The Annual Budget Release at 14:00 NZT today will be a key focus.
- A break above 0.5911 would open the path towards 0.5950, while failure to hold 0.5900 could see a retest of the 0.5864 day low.
- Watch for any surprises in the NZD Annual Budget Release, especially regarding fiscal policy implications for inflation and RBNZ policy.
Bias into NY: The bias is cautiously bullish for NZD/USD, targeting 0.5950, underpinned by the reassessment of RBNZ policy and potential for further upside if the budget doesn’t introduce new inflationary pressures. DXY weakness around 99.13 is providing additional tailwinds.