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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 above $1.09 for the first time since mid-November. Increasingly bulls look to be in control, the pair has broken above its 100-day EMA after several tests and is testing its 200-day EMA in today's dealing.
- Technicals, whilst still mixed, are turning increasingly bullish. The pair is comfortably above its 20 and 50-day EMAs and held above $1.08 before the latest move higher.
- Bulls will firstly look to close above the 200-day EMA at $1.0913, to then target bull channel resistance at $1.0991.
- To halt the momentum bears will look to break out of the bull channel with a break of $1.08.
- The AU-NZ 2 government bond yield spread is comfortably off mid-December lows (near -170bp), last around -133bp, but the rate of improvement (in AUD's favor) has picked up pace in recent dealing.
- The 2yr swap spread is also comfortably off 2022 lows, but has shown less upward momentum in recent sessions.
- Relative commodity prices look to be moving in AUD’s favor as well. Copper is 15% firmer from early January lows, and Iron Ore is up ~11% from its lows this month. Metals have definitely been outperforming softer/agricultural commodities in recent weeks.
Fig 1: AUD/NZD Spot Testing 200-Day EMA
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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