The RBNZ’s decision to raise the policy rate by 25 bps this morning set a positive tone for commodity currencies, and aussie-dollar started the session tracking the kiwi higher to $0.9000 after opening at $0.8988. It initially struggled to make further headway as kiwi strength was subsequently transmitted via a lower aussie-kiwi rate. Aussie-dollar held just under $0.9000 ahead of the jobs report. A better-than-expected employment reading triggered a sharp move in aussie-dollar and it shot through stops at $0.9000 and then through $0.9065. The pair marginally extended gains to $0.9076 before offers atop $0.9080 stymied the move. Aussie-dollar eased toward $0.9053 after that but has since remained supported off $0.9060, and was holding at $0.9069 a few minutes before the release of China’s retail sales, industrial output data. The data were delayedby a few minutes but when finally out, triggered a move lower in aussie to $0.9044. The rate was last at $0.9046. Looking ahead, a close above the 100-day moving average at $0.9050 would have bulls targeting the $0.9133 March 7 high, ahead of the 200-day at $0.9158.
