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AUD/NZD Continues to Slide Post RBA, Tests 20-Day EMA

NZD
  • AUD/NZD has continued is post RBA slide, trading down 0.31% to 1.0958. Traders were disappointed by a less hawkish RBA given Australia's higher-than-expected CPI and strong labor market. The cross is now testing the 20-day EMA this morning, while the the 14-day RSI has fallen from 71 to 53, while the MACD indictor shows increasing red bars. A break below the 20-day EMA at 1.0956, could see the cross 1.0900 (round number), while initial resistance is 1.1031 (May 7 high),
  • The AU-NZ 2Y swap is down 2bps at -69.5bps.
  • Option expiries: 1.105 (199.1m) May 8 NY cut, while notable upcoming strikes are 1.0975 ($150m May 9 ), 1.1075 (307m May 9), 1.100 ($609.08m May 9)
  • Looking ahead: Calendar is light today with just the 7yr, 10yr & 20yr bond Auction

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