Ebbs Further Away From 2-Year High

AUD/NZD treads water this morning, after extending its pullback from a two-year high yesterday. The earlier rally was the rate's longest winning streak in almost three decades and momentum indicators suggested that it took the rate into overbought territory. On the fundamental side, China's anti-dumping probe into Australian wine exports has inspired fresh concerns over further escalation in Canberra's tensions with its most important trading partner.

• Little of note in the latest round of comments from RBNZ Asst Gov Hawkesby, albeit one should bear in mind the RBNZ's relatively dovish posture vs. 65 Martin Place.
• The rate last sits at NZ$1.0953, a touch higher on the day. The cycle high at NZ$1.0953, printed on Aug 18, remains in sight, drawing bullish attention. A break here would open up 2018 high of NZ$1.1176. Bears keep an eye on Jun 2 high of NZ$1.0881 and a breach of that level would expose the 50-DMA at NZ$1.0736.