Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
AUDNZD
The AUD/NZD cross has recovered during today's session, currently tracking close to 1.1040. The pair struggled above 1.1050 through the mid-May period, so this could offer some near term resistance.
- The A$ continues to outperform in the G10 FX space, being the only currency recording gains against the USD so far today.
- A weaker tone to some equity markets (HK/China) and higher USD/CNH levels are yet to weigh. USD/CNH has risen back to 6.7000, around 0.30% above the NY close.
- Better than expected Q1 GDP, including a surge in the terms of trade, is helping at the margin, although sell-side economists are noting the challenges facing the economy going forward. Inventories are not expected to contribute as strongly to growth going forward
- Still, on a relative basis Australia has more momentum than NZ in the near term, as we highlighted yesterday in terms of relative business survey performance
- The AUD/NZD cross still looks too high relative to the 2yr spread, see the chart below, but the spread has resumed trending higher in AU's favor.
Fig 1: AUD/NZD & 2yr Spread
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok