Antipodean Pair Loses Ground, M&A Chatter Under Microscope

AUD/NZD has tumbled today, shedding 51 pips in the process, and last changes hands at NZ$1.0763. There has been little in the way of Antipodean news/data flow to drive the move, with AUD and NZD occupying opposite ends of the G10 scoreboard as we type.

• Cross-flows are one suspect, as BBG trader sources suggested that NZD/USD has been bought by leveraged accounts in reaction to M&A chatter surrounding the planned sale of Tilt Renewables' Australian and New Zealand businesses to PowAR & Mercury NZ. That said, NZD/USD rejected its 50-DMA and pulled back from highs.
• RBA Gov Lowe's speech lacked any fresh insights, he highlighted business investment as a significant weak spot in domestic economic recovery. AUD shrugged off his comments.
• China's economic data were closely scrutinised. Industrial output and retail sales rose faster than forecast, but fixed assets & property investment missed expectations, while unemployment increased more than projected.
• Bears need a continued slide through Mar 10 & 11 lows of NZ$1.0740, before setting their sights on NZ$1.0710/08, which represent the low print of Mar 9/61.8% retracement of the Feb 26 - Mar 12 rally. Meanwhile, the recent formation of a golden cross pattern bodes well for the broader bullish case. A bounce above last Friday's peak at NZ$1.0819 would shift topside focus to Feb 23 high of NZ$1.0828.