- AUD/NZD spikes higher, trades 1.06% higher on the day, bias higher.
- The pair has hit 3-month highs at 1.0811 before paring some gains to currently trade at 1.0794.
- China PPI, a good indicator of demand for commodities ticked higher in April, supporting commodities and the commodity currencies like the Aussie.
- China producer price index (PPI) increased 3.4 percent year-on-year in April from the March reading of 3.1 percent.
- On the other side, the kiwi slumps across the board on a dovish RBNZ. The central bank looks set to hold steady on rates for the foreseeable future.
- RBNZ Governor Adrian Orr said that the central bank is dedicated to easy monetary policy "for an extended period of time".
- AUD/NZD has broken above 110-EMA at 1.0705, scope for test of trendline at 1.0845. Violation there will see test of 61.8% Fib at 1.0984
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -37.2314 (Neutral), while Hourly NZD Spot Index was at -146.854 (Bearish) at 1015 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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