Better prospects for RBNZ.

Last night's CPI data for New Zealand confirms a brightening picture for NZD:

  • Great Covid management
  • Governor Orr walking markets back from negative interest rate policy,
  • Recent AUD strength now probably spent after the last RBA's decision to avoid negative rates.

Bond yield spread between the 10y's is falling (favouring AUDNZD selling- orange line on chart)

Better prospects for RBNZ.

Notice how closely the price tracks the spread.

Now we have a 4hr trend line break with room to fall and stops above near term resistance.

AUDNZD

Stops above recent highs makes sense.