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Firms Above $1.09, Q2 CPI Headlines Week

AUDNZD

AUD/NZD has firmed above $1.09 and printed its highest level since late June on Friday as the cross consolidates last weeks post Australian Employment gains.

  • The pair last prints at $1.0905/15 after rising ~1.6% last week.
  • Rate differentials, observed via 2-Year Swaps, sit at -106bps narrowing a touch in early dealing this morning.
  • AUD/NZD now sits about the 20- and 200-Day EMAs, bulls first target the high from 21 June ($1.1017). A break through here opens $1.1088 the year to date high.
  • On the downside, bears first target the 200-Day EMA ($1.0847).
  • Q2 CPI from Australia on Wednesday presents as the next risk event for the pair, a down tick in CPI to 1.0% Q/Q from 1.4% is expected.

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