AUDNZD trades to new lows following the RBNZ coverage choice

The AUDNZD pair has stayed pressured following this morning’s RBNZ coverage choice.

There was no main surprises from the financial institution, however sustaining a ‘greater for longer’ stance has given the NZD a carry.

AUDNZD (10 April 2024)

I additionally assume the response is partly attributable to stretched value motion within the pair, which climbed a number of huge figures in latest weeks.

Market internals had been already suggesting some draw back dangers although.

Under now we have the actual yield differential for the pair, exhibiting draw back dangers.

AUDNZD actual yield differential

Moreover, development differentials (utilizing CESI knowledge) additionally prompt that spot was getting a bit stretched.


The AUDNZD pair can also be prone to imply reversion when value strays too far-off from the 1.08 stage.

I do not assume in the present day’s RBNZ choice modified the med-term image that a lot, however merely supplied some room for market internals to see some overdue imply reversion.

In order for you extra particulars on the choice try the all the time useful posts from Eamonn beneath: