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AUD/NZD Tests 20-Day EMA, Quickly Met With Buyers

NZD
  • AUD/NZD finished Monday's session down 0.12% at 1.0968, the cross tested initial support at 1.0963 but was quickly met with buyers. The 14-day RSI is slightly lower although still holds above 50, while the MACD indictor is neutral. As trading on Wednesday gets underway we are slightly higher at 1.0971.
  • A break below the 20-day EMA at 1.0963 would be needed to see a directional changed with 1.0900/05 (round number support/50-day EMA) the next support zone, while initial resistance is 1.1031 (May 7 high).
  • The AU-NZ 2Y swap is up 0.5bps at -64bps.
  • Option expiries: 1.0850 ($200m), 1.0700 (200m) May 15 NY cut.
  • Looking ahead: AU Wage Price Index at 11:30

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