Category: AUD/NZD

AUD/NZD unable to hold above 1.0700, recovery limited

Posted on by FXOpen

FXStreet (Córdoba) – AUD/NZD is about to end the day trading at 1.0680/90, at the same level it closed on Friday, when it rallied from 5-month lows. The pair remains under pressure, ahead of the RBNZ meeting on Wednesday but before in a few hours the trade balance report form New Zealand will be released.

AUD/NZD: Has it bottomed?

The pair is likely to face a week of great volatility with many economic reports from New Zealand and Australia and also the RBNZ. During August AUD/NZD broke the 1.0900 barrier and accelerated the decline.

Last week it continued to slide and bottomed at 1.0570/75, the lowest since early May. Afterwards it rebounded and today rose further. It peaked at 1.0735 but if failed to hold above 1.0700 and pulled back.

The rejection form levels on top of 1.0700 could suggest that the bearish pressure still persists. The area around 1.0575 has been a relevant support and resistance on 2015. If during the current week, with all the events and numbers ahead it manages to hold above 1.0575 it could build the base for a stronger recovery, particularly if it consolidates above 1.0840 (20-day MA).

AUD/NZD is about to end the day trading at 1.0680/90, at the same level it closed on Friday, when it rallied from 5-month lows. The pair remains under pressure, ahead of the RBNZ meeting on Wednesday but before in a few hours the trade balance report form New Zealand will be released.


(Market News Provided by FXstreet)

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RBNZ expected to cut rates again, decision close – Commerzbank

Posted on by FXOpen

FXStreet (Córdoba) – The RBNZ has already cut its key interest rate since June in three steps, from 3.5% to current levels of 2.75% to cushion the effects on the real economy of the slump in key export goods prices, and to weaken the NZD, says Elisabeth Andreae, analyst at Commerzbank. They expect another rate cut this week.

Key Quotes

“Governor Wheeler repeated in his speech last week that some further easing in the key rate seems likely but would depend on the economic data”.

“There have been encouraging signals recently with regard to growth. Also, inflation in Q3 was a little higher than the RBNZ had expected. Even so, it is still well below the central bank’s target range”.

“We therefore expect a rate cut this week, although the decision should be a close one. Factors pointing to a cut are the higher risks in the emerging markets, especially China, the weaker export outlook, the renewed price slump in dairy products and the marked appreciation of the NZD since late September”.

“The fact that Wheeler referred to the risks of low interest rates for housing markets and inflation is unlikely to prevent him from moving on rates, just as it has failed to do so in the past”.

The RBNZ has already cut its key interest rate since June in three steps, from 3.5% to current levels of 2.75% to cushion the effects on the real economy of the slump in key export goods prices, and to weaken the NZD, says Elisabeth Andreae, analyst at Commerzbank. They expect another rate cut this week.

(Market News Provided by FXstreet)

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