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Ticks Away From One-Month Low Ahead Of RBNZ MonPol Decision

AUDNZD

AUD/NZD has edged higher and last trades at NZ$1.0730, 6 pips better off on the day. The early uptick has allowed the pair to move away from yesterday's one-month low. The move has occurred on the back of broader kiwi underperformance in the lead-up to the RBNZ's monetary policy decision.

  • Bulls need to force a break above the 50-DMA/May 21 high at NZ$1.0803/08 before targeting May 13/4 highs of NZ$1.0817/22. On the flip side, losses past Mar 9/Apr 30 lows of NZ$1.0710/09 would give bears a green light for targeting Feb 26 low of NZ$1.0640.
  • Implied overnight vol jumped to a two-month high yesterday, as participants prepared for the announcement of the RBNZ's monetary policy decision. It has eased off this morning and last sits at 8.69%.
  • Elsewhere, Australian quarterly completed construction work headlines the local data docket today.

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