AUD/NZD continues to push higher........>

AUSSIE-KIWI: AUD/NZD continues to push higher after a session of steady gains

yesterday. The Aussie outperformed its Antipodean cousin on Monday after the

plans of some Australian states to relax social distancing rules captured

attention. The rate penetrated a key resistance at NZ$1.0657/61, the highs of

Nov 18 & 19/76.4% retracement of the Nov 7 - Mar 18 sell-off, which reaffirmed

bullish dominance. 

- Against this backdrop, Westpac released an analysis piece this morning noting

that they expect the RBNZ to cut the OCR to -0.5% at the November meeting.

Renewed focus on monetary policy matters may have clipped the kiwi's wings,

following the recent dovish rhetoric from New Zealand's central bank as

participants await the May 13 meeting.

- With AUD/NZD sitting +18 pips at NZ$1.0707, bulls look for further gains

through the NZ$1.0800 mark, towards the pivotal Nov 7 peak located at NZ$1.0866.

Bears need a pullback under Apr 23 low of NZ$1.0585 to gain some reprieve.