Fades From 1.1400 Test

AUD/NZD has tracked lower through the session, albeit comfortably within recent ranges. The pair is off around 0.35% from closing levels last week. Some support is evident sub 1.1320, with the pair last tracking at 1.1325. A recovery in US equity futures from early session lows has helped NZD relative to AUD, although we are still in the red for the session from an equity market standpoint.

• Yield performance is also skewed more in NZD's favor, back to -93bps on a 2yr swap spread basis. This continues to the trend from last week.
• Until we see a break out of recent ranges though, recent lows were under 1.1250, while highs at 1.1375, the market may continue to range trade the pair.
• The data calendar swings back into gear tomorrow, with ANZ's Truckometer and card spending data out in NZ, while CBA's household spending indicator will print in Australia.