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AUD/NZD Make Fresh Lows On Weaker-Than-Expected AU GDP

NZD
  • The AUD/NZD continued its bearish trajectory on Wednesday, declining to its lowest level since March at around 1.0740, following the release of Australia's Q1 GDP data, which revealed slower-than-expected growth and contributed to ongoing market concerns despite the Reserve Bank of Australia's focus on controlling inflation.
  • The cross continues to trade well below all moving averages, the 14-day RSI is now in oversold territory at 28, while the MACD is showing a decrease in negative bars, indicating a potential reversal.
  • Looking at technicals, initial support is 1.0700 (Mar 12 lows / round number) a break below here would open a retest of 1.0665 (Mar 5 low). Initial resistance is now 1.0774 (June 5 highs) a break here would see us look to test 1.0800 (round number resistance).
  • The AU-NZ 2Y swap is 2bps lower at -79bps.
  • Option expiries: 1.0880 ($402.21m,) & 1.0720 ($202.61m) For June 5th NY cut, notable upcoming strikes include 1.0700 ($200m) & 1.0800 ($200m) June 7
  • Today, Australia has Loan Value and Trade Balance data at 11:30 AEST

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