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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
Weaker commodities, US equities and firmer US Treasury Yields weighed on the AUD in Tuesdays trading. AUD/NZD fell ~0.5%, breaching the 20-Day EMA ($1.0719) and deals below the $1.07 handle.
- Since March we have observed a $1.06/09 range for the most part with AUD/NZD unable to sustain breaks of either handle.
- Rate differentials, observed via 2 swap rates, have widened a touch early this week and currently sit at –131bps. We remain well above the -160bps printed in early May.
- Bears look to target low from 5 April ($1.0588), a break through here opens up 2022 lows at $1.0471.
- On the upside bulls first look to break 20-Day EMA ($1.0719), from here they can target the high from 2 May ($1.0835) and the 200-Day EMA ($1.0850).
- Data wise todays focus is on the Q1 Wage Price Index. The market looks for a 0.9% q/q outcome (forecast range is 0.8-1.1%), versus a prior 0.8% outcome. Y/Y is projected at 3.6% versus 3.3% prior.
Fig 1: AUD/NZD Daily Spot, EMAs
Source: MNI/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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