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)
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.
Stops above recent highs makes sense.
