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AUD/NZD Breaks Back Below 1.0900, Focus On NZ PMI & Food Prices Tomorrow

NZD
  • AUD/NZD finished the session down 0.34% at 1.0901, most the the weakness came during the Asia afternoon session after the RBNZ decision, before making intraday lows and tapping initial support (20-day EMA) of 1.0875 post US CPI. As trading gets underway on Thursday the pair has opened lower, breaking back below the 1.0900 to trade at 1.0889.
  • Key technical levels to watch: Initial support is 1.0876 (20-day EMA), below here 1.0836 (Mar 25 low) a break here would target 1.0809 (50-day EMA). Initial resistance lays at 1.0947 (Apr 10 highs), a break here would target 1.0957 (Apr 8 highs), while a further move higher would bring 1.100 (round number resistance) into play.
  • The AU-NZ 2Y swap is 1bps lower at -89.25bps.
  • Looking ahead: Today AU has CBA Household Spending & Consumer Inflation Expectation, while tomorrow NZ has BusinessNZ Manufacturing PMI & Food Prices

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