ridethepig | Replacing the defence in NZ Yields

Updated
Comparing NZ 10Y Yield with AU 10Y Yield we can see the divergence opening up. The local stories in NZ are looking a lot worse than in Australia for now, depriving the NZ 10Y Yield of completing the base formation.

ridethepig | Australian Yields


On the currency side, the strategic link between AUD and NZD is being threatened by AUD breaking up and flirting to complete the leg towards 1.12 - something we have been tracking since June:

ridethepig | Dovish RBNZ Pricing & Commodity Shortages


On the technical flows, the NZ10Y can sweep 0.5% comfortably, where it would be then able to replace the current defence with a more solid structure for a move back towards 1.0%. Thus the 🔑 to answering direction for NZ10Y comes only with more time elapsing.
Note
🔸 We must tread carefully here and recommend starting to trail the stops for those trading fixed income.
Beyond Technical AnalysisFundamental AnalysisNZ02YNZ05YNZ10YNZDNZDUSDnzgbrbnzridethepigTrend AnalysisUS10Y

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