NZD continues to outperform in front of........>

KIWI: NZD continues to outperform in front of tomorrow's key GDP release. NZDUSD

last trades at 0.7340, we punched through these levels in EU hours on Tuesday

despite talk of macro sellers, with the NZD rallying on the back of strong

demand at yesterday's bond syndication. AUDNZD last trades ~1.0710.

- NZDUSD bulls take comfort in an aggressive break of the 21-DMA (0.7299)

although topside follow through is lacking. The recent run of higher daily lows

adds to bullish confidence & sees focus on 0.7436 '18 highs. Initial support is

noted at 0.7307 but bears need a close below 0.7285 to ease renewed bullish

pressure & below 0.7243 to shift initial focus back to the 200-DMA (0.7181). 

- AUDNZD bears regained control with the rally capped ahead of the Bollinger top

and the close below the 21-DMA (1.0733) leaving the pair looking offered. Bears

need a close below 1.0700 to return focus to 1.0588-1.0650 where 2018 lows and

the bear channel base are situated. Bulls now look for a close above 1.0760 to

gain breathing room. Bulls now need a close above 1.0894 to hint at a move to

1.1006-73 where 2018 highs are noted.