***In an analysis email last week we....>

AUSSIE-KIWI: ***In an analysis email last week we highlighted that AUDNZD was

forming a falling wedge pattern, a bullish reversal(See MNI email AUDNZD Falling

Wedge - Mar 28 1254BST).

- Indeed, AUDNZD breached this level and closed above the 100-dma (NZ$1.0490)

for the first time since Oct 12. The topside break of NZ$1.0500 triggered

renewed demand from momentum-type accounts with the rally extending to

NZ$1.0548.

- Momentum indicators continue to generate a bullish technical picture.

Seasonality trends have seen AUDNZD higher in April, four of the last five

years.

- Goldman Sachs recently updated their AUDNZD view. They note AU-NZ yields

spreads should move higher over the next month, lifting the cross to around

NZ$1.0600. GS are targeting a move towards NZ$1.09.