Rallies To Retake 200-DMA

AUD/NZD has gone bid, despite little in the way of regional headline flow. Australian CPI figures were in-line to marginally better than expected, but there was little immediate reaction in AUD. The rate posted a marginal downtick as RBA's Harper gave an interview to the WSJ, noting that the RBA still has firepower to add stimulus if needed, but again, the reaction was very limited and the rate has promptly resumed its upward trajectory.

• AUD/NZD last trades at NZ$1.0651, 27 pips better off. Yesterday, the rate had a look below key support levels (38.2% Fibo retracement of YtD range & 200-DMA) flagged earlier, but today's move took it back above there. Profit taking may have helped drive the pair higher.
• A break above Oct 23 high of NZ$1.0690 would allow bulls to set their sights on Oct 20 high of NZ$1.0726. On the flip side, bears look for a resumption of losses, which would bring Jul 10 low of NZ$1.0566 into play.