The RBNZ-inspired surge in AUD/NZD......>

AUSSIE-KIWI: The RBNZ-inspired surge in AUD/NZD took the rate above a key

resistance from Apr 28 high of NZ$1.0752 yesterday, signalling that bulls are in

the driving seat. The rate has gently corrected that rally this morning and last

trades at NZ$1.0760, 14 pips worse off. The main focus early on turned to a

parliamentary testimony from RBNZ Governor Orr, who said that the boosted

NZ$60bn size of the central bank's asset-purchase programme is "a cap not a

target".

- Bears look for a deeper retreat, past the former resistance located at

NZ$1.0752 (Apr 28 peak). Should that level give way, attention will be drawn to

May 11 low of NZ$1.0608. On the flip side, bulls look for a pick up in topside

momentum and a move through the upper 1.0% 10-DMA envelope/upper 2.0% Bollinger

band at NZ$1.0773/75. A clearance of these levels would bring Nov 7 high of

NZ$1.0866 into view.

- Today's South Pacific data docket features Australian consumer inflation

expectation and labour market report. Across the ditch, NZ FinMin Robertson is

set to deliver the budget.