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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.
AUDNZD
AUD/NZD has held below $1.07 in recent dealing, the cross sits a touch off the base of the recent observed range. We sit at $1.0640/50.
- Rate differentials, observed via 2 Year Swap rates, point to a potential recovery in the cross. Spreads have narrowed to -136bps having been as wide as -160bps last week, despite the narrowing rate differentials AUD/NZD is down ~0.7% in the same period.
- Technically the downtrend remains firmly in place. Bears look to target year to date lows at $1.0588, a break through here opens 2022 lows $1.0471.
- Bulls first look to break the 20-Day EMA ($1.0737) to turn the tide.
Fig1: 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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