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Recent $1.08/09 Range Intact, Rate Differentials Narrow

AUDNZD

AUD/NZD sits in the $1.08/09 range which has persisted for the most part of November, there has been little follow through on moves in the month.

  • In early trade on Tuesday we sit at $1.0860/65.
  • Rate differentials, observed via 2-Year Swaps, continue to narrow and sit at -66bps. This is the narrowest since September 2022.
  • Bulls look to break the $1.09 handle to target the high from 2 Nov ($1.0945), $1.10 handle, YTD highs ($1.1088) and high from 18 Oct 22 ($1.1207).
  • On the downside bears focus on a break of the low from 10 Nov ($1.0779) which opens the $1.06 handle, the low from 22 May ($1.0560) and the 2022 low ($1.0471).

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