AUD/NZD has been in a consolidation.....>

AUSSIE-KIWI: AUD/NZD has been in a consolidation phase recently, struggling to

extend gains registered during the Mar 18 - Apr 28 bull market. It has been

happy to hold a tight range in the NZ$1.0600-1.0700 area, even as the 50-DMA has

just crossed above the 100-DMA, and severed the floor of an ascending channel,

as flagged in the chart below. The downside is limited by the 23.6% retracement

of the Mar 18 - Apr 28 rally at NZ$1.0574, unsuccessfully tested on May 4. Below

there would allow bears to target Apr 21 low of NZ$1.0484. Bulls need a jump

above May 7 high of NZ$1.0699 to pick up some momentum and bring the key Apr 28

cycle high of NZ$1.0752 into play.

- See chart at: http://tiny.cc/AUDNZDChart

- As we flagged before, participants will closely watch the outcomes of Covid-19

containment strategies implemented on either side of the ditch. The approaches

of central bankers are also in focus and we will get to know more about the

RBNZ's thinking today, when Gov Orr announces their MonPol decision. Our usual

preview of their MonPol decision can be accessed via the link below.

- See RBNZ preview at: http://tiny.cc/RBNZMay2020