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AUD/NZD Weaker Post AU CPI, Holds Below 1.1000

NZD
  • The AUD/NZD sold off on Wednesday after slightly softer than expected CPI, the cross hit a session low of 1.0968, before trading sideways and closing down 0.72% at 1.0995.
  • OIS pricing cooled post CPI and now is pricing in a 6% chance of a cut in August from about a 25% chance of a hike prior to CPI, with the market now pricing in 2 cuts by April 2025.
  • The AU-NZ 2yr swap spread dropped as much as 23bps on Wednesday before settling 16.5bps lower at -16bps.
  • Expiries: 1.1025 ($370.68m) Aug 2nd
  • Today, Judo Bank Australia PMI Mfg at 9:00 & Trade Balance at 11:30 AEST

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