Snapshot: NZD/USD is trading at 0.5982, up 0.41% on the session. The RBNZ’s firmly entrenched easing bias continues to weigh on the Kiwi, though a broad risk rally is providing a tailwind. Today’s US Unemployment Claims (08:30 ET) could trigger volatility.
- A break above 0.6000 could open the door for further gains, given the crowded short positioning in NZD.
- Watch for any hawkish surprises out of the US jobs data that could reignite USD strength and pressure the Kiwi.
Bias into NY: We favour fading rallies in NZD/USD toward 0.6000 given the underlying RBNZ dovishness. A move lower in US yields could provide a further lift, but fundamentally, the central bank stance is the key driver.