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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
The AUD/NZD cross has dipped sharply following the RBNZ policy announcement. We dipped as far as 1.1260 before some support emerged (last 1.1275/80). There could be some support just under 1.1260, as there were several recent highs around this level. Beyond that is the 50 day MA at 1.1194.
- Whilst the RBNZ delivered as expected (+50bps), there was likely some concern that the central bank could follow the RBA down a more dovish path. The actual outcome, plus the RBNZ statement, which on balance reads more hawkish relative to the RBA, has likely allayed these fears.
- This is seeing the AUD/NZD cross play some catch up to the downside with relative yield momentum, see the chart below.
Fig 1: AUD/NZD Versus AU-NZ 2yr Swap Spread
Source: MNI - Market News/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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