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NZD Sales Emerge In Reaction To RBNZ Messaging

KIWI

NZD/USD has been offered as RBNZ's Hawkesby & Ha spoke and slid through its 100-DMA ($0.6553), showing below that moving average for the first time since Jun 1. Hawkesby pointed to unsatisfactory inflation & labour market outlook for the next 2-3 years, which warrants continued provision of monetary stimulus, while Ha said that lower interest rates are effective while the RBNZ doesn't have a fixed number for lower OCR bound. Further losses past Sep 24 low of $0.6512 would open up Aug 20 low/23.6% retracement of the YtD range at $0.6489/85. The rate last sits -29 pips at $0.6551.

  • AUD/NZD has jumped above its 50-DMA after failing to take it out on Sep 30 and last deals +37 pips at NZ$1.0887. Next resistance seen at Sep 10 high of NZ$1.0936, while bears would be pleased by a pullback under Oct 6 low of NZ$1.0760.
  • NZD/JPY trades -25 pips at Y69.48, with bears looking to fall through the 200-DMA/Sep 24 low at Y68.66/64. Bulls eye Oct 6 high of Y70.36.

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