Free Trial
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 back above the $1.08 handle after recovering from lows seen last week at $1.0740.
- Inflation from both countries is on the wires tomorrow, the Bloomberg survey median estimate is at 7.1% for headline CPI in New Zealand and at 7.6% in Australia.
- As the below chart shows swap spreads have been widening in recent dealing, as the cross remains range bound. We have unwound around 2/3's of the improvement (in AUD's favour) since mid December.
- Still, relative commodity prices may have offset the pressure from swap spreads. SGX Iron Ore is up ~11% in 2023, and Copper is up ~14%.
- Technically the pair is consolidating with ranges respected in recent dealing. With bulls looking to break the 200-day EMA at $1.0907, and bears looking to target January 2023 lows at $1.0708.
Fig 1: AUD/NZD vs 2 Year-Swap Spreads
Source: Market News International (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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok