AUD/NZD shot up on the back of the NZ CPI

AUD/NZD rallied from the 1.0620's and a low of 1.0610 to score recent highs of 1.0743.

New Zealand Q2 CPI came out as 0.4 % q/q vs 0.5% expected and 0.2% prior while the y/y at 0.4% vs 0.5% expected and 0.4% previous. This has the markets pointing to a rate cut from the RBNZ who has remained cautious and outspoken as prepared to act if need be. 

AUD/NZD levels

AUD/NZD is now through the 1.07 level and has rallied well clear of the 4hr ma's, up to test June highs. 1.0800 is next key target meeting the 200 dma and recovering 50% of the late April sell-off. To the downside, the 50 dma is located at 1.0572 and 1.0548 could be next level of support below there.