RBNZ Governor Adrian Orr today, “We believe we still have some work to do, but the good news is because we’ve done so much already, the tightening cycle is very mature, it’s well advanced.”
There’s s “a little bit more to do before we can drop to our normal happy place, which is to watch, worry and wait for signs of inflation up or down,” he said.
AUD/NZD’s rally picks up some momentum recently on expectations that RBA is catching up with RBNZ on tightening. However, the cross is now pressing medium term channel resistance, and in proximity to 61.8% projection of 1.0314 to 1.1168 from 1.0987 at 1.1515. Overbought condition could finally limit upside. Break of 1.1303 will argue that it has turned into a corrective phase.
Nevertheless, firm break of 1.1515 could prompt further upside acceleration to 100% projection at 1.1841.