• AUD/NZD longs unwind after hawkish RBNZ hold - 3-3 vote split, RBNZ Governor casts deciding vote

• AU monthly CPI miss also piling on the pressure - largest one day drop since Nov 2019

• Cross now sitting on the 55DMA cluster (1.2100-22). The level has been the backbone of the trend

• Critical to hold as a daily close below the cluster likely changes the narrative, opens door to deeper setback

• Positioning is also a risk, crowded long base means the washout can be disorderly if 1.21 gives way cleanly
AUDNZD daily chart


FX positioning


Justin McQueen is a Reuters market analyst. (The views expressed are his own). ((Email: ))