February 08, 2023 00:04 GMT
Breaks Higher, Now Back To Mid-November 2022 Levels
AUD/NZD is dealing above the $1.10 handle this morning, last printing $1.1010/20.
- The cross rose ~0.9% in yesterday's session as the RBA raised the cash rate 25bps and signaled that there were further hikes to come.
- This puts the cross at its highest level since 11 Nov 2022. Bulls target $1.1101, the 61.8% retracement of the Sep-Dec fall. Bears first look to break the 200-day EMA at 1.0912.
- The AU-NZ 2 year swap spread continues to improve in the AUDs favour, now dealing at -103bps as it recovers from cycle lows seen in December at -160bps. The chart below overlays this chart against the AUD/NZD cross.
Fig 1: AU-NZ 2 Year Swap vs AUD/NZD Daily Spot
Source: Market News International (MNI)/Bloomberg
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