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AUD/NZD picking up bullish momentum, Fonterra-led setback fades

FXStreet (Bali) - AUD/NZD has been shaken out on both direction following a fest of headlines coming from New Zealand, with the rate still maintaining an overall bid tone.

AUD/NZD was initally taken into higher ground following the RBNZ Finacial Statement Report, although the latest bout of the Central Bank's jawboning was not quiet as effective this time around, despite mentioning that the NZD remains at unjustifiable and unsustainable levels. Then came, out of the blue, a highly ambitious Fonterra 2015 forecast cash payout at NZD 5.55-65, instigating an intraday 20+ pips run-up in the Kiwi before fading.

Technically, within the context of bullish dynamics on a the daily, most traders now perceive the pair in a range-bound environment bracketed between 1.11 and 1.13, with buyers having recently emerged to try setting an interim bottom at the former. Should AUD manage to close above 1.1150 on a daily basis, looks like we might be in for a projected target of 1.1250 ahead of 1.13. Topside failure though, and 1.11 will be in focus ahead of 1.1050.

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