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AUDNZD: AUD/NZD Continues Move Highs, Eyes 1.1000

AUDNZD
APACAustraliaNew ZealandBulletGlobalForeign Exchange BulletsRegionMarkets
  • The AUD/NZD rose 0.32% to 1.0994 on Wednesday, closing at its highest level since Aug 20. The move was largely driven by the drop in the NZD following rate cut expectations increasing for next week.
  • The cross is expected to continue trending higher, possibly reaching 1.11 over the next three months due to the RBA's less dovish stance, escalating Middle Eastern tensions could undermine both the AUD and NZD, supporting the USD.
  • The OIS pricing was little changed on Wednesday, 18bps or about a 50% chance of a cut is priced in by December this year. While looking further out to August next year OIS has cooled with 87bps of cuts priced, down from 102bps of cuts priced on Monday.
  • Spot is trading just below initial resistance at 1.1000 (round number) a break here would open a move to 1.1057 (August Highs), while to the downside initial support is 1.0915-1.09120 (20, 50 & 100-day EMA) a break here would open a move to 1.0800.
  • The AU-NZ 2yr swap spread hit new cycle highs on Wednesday of 21bps, and currently trades at 16.5bps.
  • Expiries: 1.0855 ($221m), 1.0100 ($200m), 1.1175 ($250m), 1.13258 ($370m) Oct 3 NY cut
  • The we have Judo Bank PMI's and Trade Balance Data.
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  • The AUD/NZD rose 0.32% to 1.0994 on Wednesday, closing at its highest level since Aug 20. The move was largely driven by the drop in the NZD following rate cut expectations increasing for next week.
  • The cross is expected to continue trending higher, possibly reaching 1.11 over the next three months due to the RBA's less dovish stance, escalating Middle Eastern tensions could undermine both the AUD and NZD, supporting the USD.
  • The OIS pricing was little changed on Wednesday, 18bps or about a 50% chance of a cut is priced in by December this year. While looking further out to August next year OIS has cooled with 87bps of cuts priced, down from 102bps of cuts priced on Monday.
  • Spot is trading just below initial resistance at 1.1000 (round number) a break here would open a move to 1.1057 (August Highs), while to the downside initial support is 1.0915-1.09120 (20, 50 & 100-day EMA) a break here would open a move to 1.0800.
  • The AU-NZ 2yr swap spread hit new cycle highs on Wednesday of 21bps, and currently trades at 16.5bps.
  • Expiries: 1.0855 ($221m), 1.0100 ($200m), 1.1175 ($250m), 1.13258 ($370m) Oct 3 NY cut
  • The we have Judo Bank PMI's and Trade Balance Data.