AUDNZD trades to new lows following the RBNZ policy decision

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.

I additionally suppose the response is partly because of stretched worth motion within the pair, which climbed a couple of huge figures in latest weeks.

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

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

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

The AUDNZD pair can be vulnerable to imply reversion when worth strays too far-off from the 1.08 degree.

I do not suppose right this moment’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.

If you would like extra particulars on the choice try the at all times useful posts from Eamonn beneath: