Extends Losses, Peeks Below 100-DMA

AUD/NZD extends its uninterrupted losing streak, sparked by a shooting star candlestick pattern charted on Jan 20. The 100-DMA (today at NZ$1.0694) provided support for the last two days, but appears to be giving way, with the pair now trading below there, last -12 pips at NZ$1.0691. Both Antipodean currencies struggle against most of their other G10 peers, amid a broader risk-off feel.

• Central bank dynamics have played a role in adding weight to the pair, after several sell-side desks revised their RBNZ calls and said that they no longer expect any further OCR reductions in the foreseeable future. Chatter re: QE taper has also emerged, with the RBNZ's ex-Chief Economist telling MNI that it might happen as soon as this year.
• Health data provides another point of note, although this has been less favourable to New Zealand. Australian federal gov't extended suspension of the trans-Tasman travel bubble by another 72h today, as NZ health officials scramble to trace contacts of three new community cases of Covid-19.
• A sustained move through the aforementioned 100-DMA & a break under Jan 26 & 27 lows of NZ$1.0682 would give bears some impetus, turning their focus to Jan 4 low of NZ$1.0670. Bulls need to recover the 200-DMA at NZ$1.0723 before targeting Jan 19 high of NZ$1.0843.