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Highest Since Late September

AUDNZD

AUD/NZD firmed to its highest level since 25 September yesterday, weaker than forecast CPI in NZ and the RBA minutes showing a hawkish bias yesterday saw the pair firm ~0.9%.

  • The cross sits a touch under the $1.08 handle on Wednesday.
  • There was interest in AUD/NZD calls in option markets yesterday, ~$500mn of $1.0950 strike Calls dealt with the expiry capturing the RBNZ rate decision on 29 Nov.
  • Bulls immediate focus is now on the 200-Day EMA ($1.0822). This opens $1.0923, the high from 18 Sep and the $1.10 handle.
  • On the downside bears look to hold below the $1.08 handle to target the 20-Day EMA ($1.0733). A break below here opens the $1.06 handle, the low from 22 May ($1.0560) and the 2022 low ($1.0471).

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