Forex Flash: AUD/NZD looking at 1.2650 - ANZ

With AUD/NZD last at 1.2450, off Friday's 1-month highs at 1.2484, 50% Fibo retrace of daily down leg 1.2831/1.2137, ANZ bank is looking “to re-instigate AUD/NZD longs at 1.2440, targeting a move to 1.2650,” the analysts say, setting “a stop at 1.2330 (we took profit on our long AUD/NZD trade at 1.2470, instigated 19 February at 1.2240).”

They believe “In New Zealand the risks look poised to the downside as the market focuses on the developing drought, and on Thursday’s RBNZ MPS,” while “By contrast, Australian data this week is likely to exhibit strength,” they add.