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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
AUDNZD
AUD/NZD is dealing a touch above the $1.08 handle after the RBA hiked the cash rate 25bps.
- Some of the dovish tones from the statement (removing the need for hikes in the months ahead and peaking inflation pressures) has weighed on the RBA outlook.
- Terminal rate pricing for the RBA is now into ~4%, having sat a touch below 4.15% pre-rate decision.
- AU NZ Rate differentials have also widened in the aftermath of the monetary policy announcement, with the 2-Year rate differential now sitting at -144bps. We are still above Dec lows for this spread, but the trend is clearly moving against the cross.
- For AUD/NZD, bears look to break the $1.08 handle, opening up the 2023 low at $1.0708.
Fig 1: AU NZ 2 Year Rate Differential vs AUD/NZD Spot
Source: MNI/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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