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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
AUDNZD
AUD/NZD has started risen to fresh highs in early Friday dealings. The pair getting to 1.1115, we now sit just off these highs.
- The cross has had support from earlier weaker NZ Data releases. Notably the NZ PMI fell to 41.1 in June. This is the weakest level since Q3 2021 and continues the run of soft data outcomes, particularly on the survey side.
- BNZ noted: "While the weakness in these series have not been as deep as during the GFC the length of it has been longer, and it is not over yet'': BNZ
- ``Manufacturing activity is highly leveraged to domestic demand, particularly residential construction and household spending. Both of these are faltering” (per BBG)
- We also had card spending figures print lower in June, down 0.5%m/m for total spending and -0.6% for retail. May falls were also revised slightly weaker.
- The AU-NZ 2yr swap spread is trending towards flat, last -12bps, see the chart below.
- Levels wise for AUD/NZD, a sustained 1.1100 break would open up 1.1174 (July 2022 highs).
- Next week we have the all important NZ Q2 CPI release on Wednesday, then AU employment on Thursday.
Fig 1: AUD/NZD Looks To Maintain 1.1100 Break, AU-NZ 2yr Swap Spread Getting Close To Flat
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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