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Firms Off YTD Lows, Rate Differentials Hold At Multi-Year Lows

AUDNZD

AUD/NZD printed a fresh 2023 low yesterday at $1.0667, before firming ~0.8% to sit at $1.0755/60.

  • Rate differentials, observed via 2-year swap rates, have held at multi-year lows at -160bps pointing to possible further downside in the cross.
  • Bears look to target 76.4% retracement of the Dec-Feb bull move at $1.0617, from here 2022 lows at $1.0471 present as the next target.
  • Bulls first target a close above $1.08, to target the 200-Day EMA at $1.0898.
  • The RBA Minutes of the March policy meeting due this morning presents as the next risk event for the cross.

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