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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
AUD/NZD remains around recent lows, last near 1.0665, as the RBNZ comes into view (around 15mins away). The cross is at levels last seen in May of this year. Lows back then were around 1.0560. Late September highs in the pair came in near 1.0780, which is also close to the 20-day EMA.
- By and large the cross is following 2yr swap rate differentials, see the chart below. We have seen some stability in the swap spread in recent sessions emerge, with AUD/NZD spot a little low, but the divergence is arguably not large by historical standards.
- The near term focus rests squarely with the upcoming RBNZ policy announcement.
- No change is expected and while we don’t expect there to be major changes to the meeting statement, it will be watched closely for any discussion of upside risks to the inflation outlook and indications that forecasts might be revised higher.
Fig 1: AUD/NZD Versus AU-NZ 2yr Swap Rate Differential
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.
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