Today's regional holidays in New........>

AUSSIE-KIWI: Today's regional holidays in New Zealand and (partially) Australia

allow us to take a look at the wider technical picture for AUD/NZD. The rate's

brief flirtation with parity on Mar 18 is fading into oblivion as it is hitting

YtD highs. The outlook remains bullish, with the next resistance level located

at NZ$1.0657/61, the highs of Nov 18 & 19/76.4% retracement of the Nov 7 - Mar

18 sell-off. Above there would clear the way to the NZ$1.0800 mark, followed by

the Nov 7 cycle peak at NZ$1.0866. That being said, a bearish divergence has

developed in RSI indicator, signalling that bullish momentum might be weaker

than thought. A fall below Apr 21 low/trendline support at NZ$1.0484/66 is

needed to put bears in the driving seat.

- Recent messaging from the RBNZ has dented NZD, with MPC members tipping hat to

potential for adding monetary stimulus, including via -ve rates. In addition,

Gov Orr signalled "open mindedness" about monetizing debt. Apart from central

bank dynamics, relative trajectories in commodity mkts & the ramifications of

differing Aussie & NZ lockdown strategies are under the microscope.

- See chart at: https://emedia.marketnews.com/marketnewsintl/AUDNZD27042020.png