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Aussie Finds Poise, Trans-Tasman Impetus Eyed

AUD

A firmer re-open from U.S. e-mini futures bodes well for riskier G10 FX, with the Aussie dollar clawing back its initial losses as a result.

  • Trans-Tasman spillover has lent further support to the AUD after New Zealand's Q2 CPI printed at +7.3% Y/Y, topping expectations and marking fresh 32-year highs.
  • The post-NZ CPI upleg allowed AUD/USD to have a look above last Friday's high. The pair last deals at $0.6808, up 15 pips on the day.
  • From a technical perspective, the next layer of resistance is located at $0.6874, which capped gains on Jul 8. Bears keep an eye on Jul 14 low of $0.6682.
  • AUD/NZD has erased its earlier uptick in reaction to NZ data and last trades flat at NZ$1.1020. Bears look for a sell-off towards Jul 4 low of NZ$1.0962, with bulls keeping an eye on Jul 11 high of NZ$1.1104.
  • There isn't anything in the way of meaningful domestic data coming up today, although the release of the RBNZ's preferred gauge of core inflation may provide some interest.

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