We have said recently we would reassess our bullish AUD/NZD Blueprint view on a weekly close below 1.12. This has now happened, and while the decline continues to take the cross further from our sense of fair value currently, the momentum shown in the NZ data and also in NZ commodity prices means we neutral on the cross for now. Thursday sees the week’s two key events in the peripheral dollar bloc – the RBNZ MPS and Australian labour force report – and these events are likely to help drive near-term direction in the cross and AUD and NZD more generally.
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