AUD/NZD May Extend Losses After RBNZ and New Zealand CPI Data
The recent slightly hawkish RBNZ rate decision and better-than-expected New Zealand second-quarter inflation data is driving local front-end government bond yields higher, especially relative to Australia.
AUD/NZD has thus been aiming lower these past few weeks and may continue to do so as it capitalizes on the RBNZ's more hawkish shift compared to the RBA.
But, key support remains in focus at 1.0601, which is the May low. Clearing this point exposes the 1.0541 - 1.0564 zone.
A bearish crossover between the 20-day and 50-day Simple Moving Averages hints at a near-term downward bias. In the event of a material turn higher, keep an eye on potential falling resistance from March.
AUDNZD
AUD/NZD has thus been aiming lower these past few weeks and may continue to do so as it capitalizes on the RBNZ's more hawkish shift compared to the RBA.
But, key support remains in focus at 1.0601, which is the May low. Clearing this point exposes the 1.0541 - 1.0564 zone.
A bearish crossover between the 20-day and 50-day Simple Moving Averages hints at a near-term downward bias. In the event of a material turn higher, keep an eye on potential falling resistance from March.
AUDNZD