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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
AUDNZD
AUD/NZD is tracking at August highs. The pair last near 1.0850. The pair is above all key EMAs, while the simple 50-day MA sits near 1.0870. Late July highs in the pair sit near 1.0935. Whilst rate differentials at the short end are moving back in AUD/NZD's favor, the currency looks to be outperforming these trends at the margin.
- The chart below overlays the AUD/NZD cross against the 2yr AU-NZ 2yr swap spread. NZD has been weighed down today by weaker PMI and food price prints, although support appears evident ahead of the 0.6000 level.
- AU yields are higher today, but that appears to be tracking US moves from Thursday. RBA Governor Lowe's testimony is offering few surprises.
- Next Tuesday we get Q2 wages data in Australia. The market looks for a 0.9% q/q outcome (0.8% prior), while the y/y print is expected at 3.7%, unchanged from Q1. The RBA Mins are also due on Tuesday.
- The RBNZ decision is due on Wednesday next week. The consensus is for steady rates at 5.50%.
Fig 1: AUD/NZD Versus AU-NZ 2yr Swap Spread
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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