The NZD sits around 0.8320 this morning, having traded as high as 0.8360 overnight. The NZD gained a boost yesterday afternoon, along with the AUD, on the back of better than expected China trade data. Overnight, in fairly benign markets the NZD/USD extended gains, rising above 0.8360. However, it was unable to sustain the push higher and has returned to sit at 0.8320 currently. Key near-term resistance remains just above the 0.8400 level. A push above this level would open up tactical selling opportunities, in our view. Today’s domestic data release (BNZ PMI) may be sufficient to sustain upward momentum in the NZD/USD. There is little to suggest the data will not be consistent with the strong expansion shown in December (56.4).
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