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Above $1.10, Eyeing Multi-Month Highs, RBNZ In Focus


AUD/NZD prints close to 1.1030, ~0.15% firmer in Monday's session.

  • The pair closed above $1.10 on Friday, bulls are targeting a break of the 11 Nov high at $1.1045 opening up $1.1101, which is a 61.8% retracement of the Sep-Dec down leg.
  • Bears target Feb lows at $1.0889.
  • 2-Year Rate Differentials have widened ~4bps today, last dealing -99bps. The spread has tightened ~63bps since its December cycle low, printing its narrow level since early October on Friday at -94bps.
  • Wednesday's RBNZ meeting presents the next macro risk event for the pair. Pricing in OIS markets has remained stable in recent dealing with ~45bps of tightening priced into the meeting, and the terminal rate of ~5.3%.
Fig 1: AUD/NZD Daily Spot & EMAs

Source: MNI/Bloomberg

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