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NZD: AUD/NZD Breaks Bac Below 1.0900, AU CPI Up Later

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  • The AUD/NZD fell 0.38% on Tuesday to close at 1.0871, as the NZD benefitting slightly more as China announced stimulus package to support their struggling market. While the AUD also saw some weakness on a slightly move dovish RBA than expected after they didn't consider any rate hikes, however they signaled there is unlikely to be any cuts in the near term.
  • The OIS market did however firm slightly post the RBA with 19bps of cuts up from 16bps priced in for the December meeting, while the market is now pricing in roughly an extra 25bps of cuts through to August next year.
  • The cross fell below all key moving averages on Tuesday with Initial resistance now seen at just above spot at 1.0882 (200-day EMA) with major resistance seen at 1.0944 (Sep 23/24 Highs), while to the downside initial support is 1.0860 area, with a break here opening a move to the September lows of 1.0789.
  • The AU-NZ 2yr swap spread closed 2bps lower on Tuesday at 4.5bps.
  • Expiries: 1.0975 ($255.12m), 1.085 ($258.06m) for Sept 27
  • Today, we have the CPI at 1130 AEST / 0930 HKT
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  • The AUD/NZD fell 0.38% on Tuesday to close at 1.0871, as the NZD benefitting slightly more as China announced stimulus package to support their struggling market. While the AUD also saw some weakness on a slightly move dovish RBA than expected after they didn't consider any rate hikes, however they signaled there is unlikely to be any cuts in the near term.
  • The OIS market did however firm slightly post the RBA with 19bps of cuts up from 16bps priced in for the December meeting, while the market is now pricing in roughly an extra 25bps of cuts through to August next year.
  • The cross fell below all key moving averages on Tuesday with Initial resistance now seen at just above spot at 1.0882 (200-day EMA) with major resistance seen at 1.0944 (Sep 23/24 Highs), while to the downside initial support is 1.0860 area, with a break here opening a move to the September lows of 1.0789.
  • The AU-NZ 2yr swap spread closed 2bps lower on Tuesday at 4.5bps.
  • Expiries: 1.0975 ($255.12m), 1.085 ($258.06m) for Sept 27
  • Today, we have the CPI at 1130 AEST / 0930 HKT