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NZD/USD Tests 0.6000 Ranges Tight, AUD/NZD Makes New Highs Of 1.0958

NZD
  • NZD/USD has traded sideways on Monday, there has been very little in the way of market headlines. Ranges have remained very tight with the pair trading in just a 20-pip range, making highs of 0.6018, and lows of 0.6000 we now trade at 0.6012 as Europe logs in. Initial resistant holds at 0.6032 (20-day EMA), while initial support is at 0.5985 (Apr 5 low).
  • The US-NZ 2y made highs on Friday at 14.6bps, we are 3.4bps lower at 18bps now.
  • AUD/NZD has also traded sideways, with the pair unchanged for the day. Trading has been constrained to recent ranges although we did briefly make new YTD highs of 1.0958 early morning before making intraday lows of 1.0922, we now trade at 1.0941 as Europe logs in.
  • The AU-NZ 2Y swap is 1bps lower at -83.5bps.
  • Option expiries: there are no large strikes today, with upcoming notable strikes being Upcoming notable strikes: NZD/USD 0.5955 (NZD1.22b April 11), 0.5850 (NZD625m April 10), 0.6105 (NZD386m April 11). AUDNZD 1.0925 (US$201.38m April 9), 1.0950 (US$100.46m April 9)
  • Looking ahead: RBNZ decision on Wednesday, while AU has Consumer & Business Confidence on Tuesday

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