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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 RBNZ's standard-sized 25bp rate hike and language pointing to their intention to raise the OCR in measured steps disappointed some market hawks, resulting in broad-based NZD sales on Wednesday. This dynamic provided a firm impetus to AUD/NZD, which punched through the neckline of a double bottom pattern, signalling a mounting topside impetus. The emergence of this bullish structure coincided with the pair closing above its 100-DMA for the first time since mid-October.
- The rate currently trades at NZ$1.0481, up 15 pips on the day, testing the ceiling of a bear channel drawn off Oct 13 high. A clean break here would provide another encouraging sign for bulls.
- Should a sustained break out of the channel materialise, the next layer of resistance above is provided by NZ$1.0528, the intraday peak printed on Oct 29 when the 100-DMA capped gains. Above there opens Oct 13 high of NZ$1.0612.
- The latest leg higher in spot AUD/NZD has coincided with a bounce in the AU/NZ 2-year swap spread, which registered a six-year low as recently as last week. It staged a fairly sharp rebound since, hitting fresh monthly highs.
Fig. 1: AUD/NZD
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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