No Floor For AUDNZD
RBNZ Governor Wheeler confirmed last week that the central bank has intervened by selling New Zealand dollars. It is probably no coincidence that AUDNZD broke below 1.20 the day before the remarks were made, trading below for the first time since October 2009. The 1.20 level has significance for another cross too of course. The Swiss National Bank has already drawn a line in the sand there in EURCHF and, given the superficial parallels, some have wondered if a similar floor could be installed under AUDNZD.
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