AUD/NZD picked up a bid yesterday,......>

AUSSIE-KIWI: AUD/NZD picked up a bid yesterday, following a touted short squeeze

in AUS/USD. Some pointed to a particularly strong preliminary retail sales out

of Australia as well, even as there was no immediate reaction and the reading

was subject to a positive skew owing to the pre-lockdown buying frenzy. AUD/NZD

gained through the day, but rejected NZ$1.0626 (Apr 17 high & bullish target).

- The rate peeked through yesterday's high this morning, but retreated without

delay. It last deals at NZ$1.0622, barely changed. Losses through the 200-DMA at

NZ$1.0510 would draw attention to Apr 21 low of NZ$1.0484, the key near-term

support. Bulls look for a firm rally above recent highs, which would open up Nov

18 & 19 highs/76.4% retracement of the Nov 7 - Mar 18 slide at NZ$1.0657/61.

- Several longer-term factors are beginning to capture wider attention. Oz and

NZ adopted different lockdown strategies, with the latter implementing tighter

restrictions. In addition, participants weigh potential impact of the pandemic

on industrial commodities vs. food, with the former likely to take a bigger hit.

Finally, the RBNZ's communique has been dovish recently, as they signalled

potential for further easing & tipped hat to debt monetization as an option.