AUD/NZD: a game of two halves on RBNZ and jobs data
FXStreet (Guatemala) – AUD/NZD has been a game of two halves . First, the RBNZ cut interest rates as expected by 25 bps, but offered a mixed outlook in that they want the bird lower, they are confident they will reach their inflation target, will stay firm on rates, but are ready to cut rates if appropriate.
NZD actually went on the bid, despite the rate cut that was price din at the margin. Then, we had the Aussie fairytale in jobs numbers and the cross rallied, but not as far as the bird did on the rate cut. The 20 SMA on the hourly seems to be menacing for the bulls and the price is stabilizing 10 pips below it.
Technically, the 20 SMA need to give by the look of things to par back losses on to the 1.09 handle while the 200 SMA on the same time frame is coming in at 1.0943 where the price went bullish from into last week’s close. RSI is neutral and we are some way off the pivot still at 1.0880. R! stands at 1.0931 and R2 stands at 1.1001.
(Market News Provided by FXstreet)