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Rally Extends, Testing 20-day EMA Resistance

NZD

NZD has continued to push higher, after ANZ's view change that it sees 25bps hikes in Feb and Apr of this year.

  • NZD/USD hit a weekly high of 0.6129 in recent trade, holding onto gains made after ANZ's view on rate hikes, testing the 20-day EMA at 0.6125 while trading just below the 50-day EMA at 0.6135, a hold above here could see another attempt at 0.6150.
  • AUD/NZD is making fresh lows, hovering around 1.0600 breaking through the lows from Oct, next target would be May lows of 1.0560.
  • Note, a cumulative 63bps of easing is priced by year-end versus 69bps yesterday. However, this is measured from a terminal OCR of 5.71% versus 5.58% yesterday.

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