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AUD/NZD Heads Higher on Strong AU Employment Data, Eyes 1.0900

NZD
  • AUD/NZD initially rallied on weaker than expected NZ GDP, however the move was quickly erased and we made daily lows of 1.0827 as we headed into AU employment data. The large beat in AU employment has pushed the AUD higher making new fresh highs of 1.0869, the pair now trades up 0.29% at 1.0863 just above Nov 23 highs after breaking through initial resistance.
  • The cross is now up 2.75% after testing yearly lows on Feb 22, while the AU-NZ 2Y swap continues to push higher
  • Key technical levels to watch: AUD/NZD surged through initial resistance and now hovers just above 1.0862 (Nov 28 highs), next upside target is 1.0900 (Nov 20 highs). While to the downside, initial support is 1.0774 (200-day EMA) a break below 1.0740 (20/100-day EMA) could signal further weakness, opening up 1.0700 (Mar 11 lows)
  • Looking ahead: NZ has Trade Balance on Friday, while AU calendar is light until WBC Consumer Confidence on Tuesday

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