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AUDNZD Makes New YTD Highs, AU-NZ 2Y Swap Continues To Climb.

NZD
  • AUD/NZD continued its trend higher on Wednesday finishing the session up 0.34% at 1.0831 before making new highs this morning post NZ GDP coming in below expectations at -0.3% vs 0.00% expected. The cross tapped 1.0854, however has erased most of the move as we head into AU employment data, now trading back at 1.0831.
  • The cross is now up 2.69% after testing yearly lows on Feb 22, while the AU-NZ 2Y swap continues to push higher
  • Key technical levels to watch: Initial resistance is now 1.0854 (Mar 21 highs - Post GDP move) a break above here would open up a retest of 1.0862 (Nov 28 highs). While to the downside, initial support is 1.0774 (200-day EMA) a break below 1.0740 (20/100-day EMA) could signal further weakness, opening up 1.0700 (Mar 11 lows)
  • Looking ahead: AU has employment data at 11:30 AEST, while NZ has Trade Balance on Friday

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