Extends Bullish Run

AUD/NZD has gained altitude and currently trades at NZ$1.0987, 25 pips better off. The rate is narrowing in on the psychological NZ$1.1100 figure, printing its strongest levels since almost two years in the process.

• New Zealand's coronavirus situation continues to provide interest, with PM Ardern announcing a four week delay to the general election. As a result, New Zealand's Tsy postponed the pre-election economic and fiscal update, originally slated for this Thursday.
• Across the Tasman, Victoria Premier extended state of emergency in the state by four weeks.
• The RBNZ's apparently increasing openness toward negative interest rates and last week's above-forecast boost to the LSAP scheme may be augmenting pressure to the NZD at the start to the week.
• The rate has now risen for 11 consecutive days (albeit it charted a Doji on Aug 6) and is on course to extend its bullish run. A break above the NZ$1.1100 mark would expose the upper 3.0% Bollinger band at NZ$1.1059. Conversely, a retreat under Jun 2 high of NZ$1.0881 would give bears some momentum, turning focus to Aug 7 low of NZ$1.0799.