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AUD/NZD trades flat at NZ$1.0414........>

AUSSIE-KIWI
AUSSIE-KIWI: AUD/NZD trades flat at NZ$1.0414 after sinking yesterday, finishing
48 pips worse off.
- The kiwi gained poise yesterday on the back of NZ yield differentials and the
softening of expectations of a rate cut from the RBNZ in August, prompting the
pair to lose altitude.
- Yesterday the rate bottomed just 5 pips above the trendline support, which
today comes in at NZ$1.0400, a psychologically significant level and the low of
Feb 6. A breach here would reinforce the bearish case, opening up the lower 1.0%
10-DMA envelope at NZ$1.0370. Bulls look to NZ$1.0444, which limited losses on
Jul 11 & 16 and a break above would expose the Jun 28 & Jul 1 highs, which
coincide at NZ$1.0468.
- Focus turns to the key Australian labour market report, due to be released at
02:30 BST/ 11:30 AEST.

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