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AUD/NZD Remains Rangebound

NZD
  • The AUD/NZD ended Wednesday trading down 0.12% at 1.0760, and remains rangebound between 1.0750-1.0800.
  • The cross continues to trade well below all moving averages, although still holds just above last weeks lows of 1.0735, the 14-day RSI is steady at 36 while the MACD is now remains neutral.
  • Looking at technicals, initial support is 1.0735 (Jun 6 lows) a break below here would open a retest of 1.0700 (Round Number support). Initial resistance is 1.0800 (round number resistance), a break here would then target a move to 1.0809 (20-day EMA)
  • The AU-NZ 2Y swap is unchanged at -77.5bps.
  • Option expiries: 1.0850 ($100m), 1.0985 ($100m) for June 13 NY Cut
  • Today, focus in the region will be on the BoJ decision

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