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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
AUD/NZD has firmed above $1.10 handle printing its highest level since late February yesterday, the pair last prints at $1.1015/25.
- Rate differentials, observed via 2 Year swaps, continue to narrow last dealing at -99bps as the impact of the RBA's latest rate hike lingers. We had been as wide as -165bps in late May.
- Now that the $1.10 handle has been cleared bulls target YTD highs at $1.1088, a break through here opens $1.1150 a Fibonacci projection.
- On the downside bears first target the low from 6 June ($1.0884).
- New Zealand's Q1 Manufacturing Activity crosses shortly, there is no estimate. Also due this morning is Australia's April Trade Balance, a surplus of $13.65bn is expected.
Fig 1: AU NZ 2 Year Swap vs AUD/NZD Daily Spot
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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