June 28, 2022 01:48 GMT
AUD/NZD has edged into a slightly higher range, tracking close to the 1.1000 level. The pair is meeting selling interest above this level though, note the 50-day MA comes in at 1.1013.
- Today has seen slight A$ outperformance versus NZD, but both currencies are seeing tight ranges against the USD.
- The recent volatility in short term rates continues. The AU-NZ 2yr spread is back to -80bps, down from yesterday's highs of -70bps. This spread remains above recent lows though. 10yr spreads are also lower on the day, but by a smaller magnitude.
- Spreads were moving in favor of the AUD yesterday, so today’s shifts may be helping to cap gains in the AUD/NZD cross rate.
- A reminder that the data calendar swings into gear tomorrow, with AU retail sales on tap, followed by NZ business and consumer sentiment updates on Thursday and Friday respectively.