FXStreet (Guatemala) – AUD/NZD rallied on the event that was Aussie CPI, with headline beating expectations and the trimmed mean within the RBA’s preferred band of 2-3% target. The price went from below 1.0752 to reach a high of 1.0827 for the session, but not exceeding the highs of 22nd Jan’s business of 1.0835.
The CPI’s came in as follows: Australia RBA trimmed mean CPI (QoQ) came at +0.6% vs +0.5% and +0.3% last and (YoY) stood at +2.1% vs 2.1% exp and last. Consumer Price Index (YoY) came at +1.7% vs 1.6% exp and 1.5% last and (QoQ) came in at 0.4% vs 0.3% exp and +0.5% last.
The results compared to that of the New Zealand’s performances in their CPI is likely to underpin the upside where consumer prices in New Zealand fell at the fastest quarterly pace in seven years in Q4, with the CPI declining 0.5% in the last quarter of 2015, against a drop of 0.2% estimated. That coupled to the dairy prices exposes the bird and brings bets forward for a rate cut from the RBNZ.
AUD/NZD levels
Technically, there is plenty of upside for the cross to target and continue in the ascending channel that commenced from the 7th Jan 2016 business. RSI is still in neutral on the 4hr chart and daily. R2 is first target at 1.0843 and R3 is located at 1.0873. The 200 dma is located at 1.0890 guarding Nov highs at 1.1086.
(Market News Provided by FXstreet)