FXStreet (Delhi) – Research Team at BBH, suggests that shortly after the FOMC statement, attention will turn to the Reserve Bank of New Zealand.
Key Quotes
“Following the soft inflation report, many expect the RBNZ to be dovish but hold off easing policy. The New Zealand dollar is essentially flat this week so far, hovering around $0.6500. It has been no match for the Australian dollar.
The Aussie has gained 2% against the Kiwi since the middle of the month. Almost 0.5% is being recorded today after Australia reported slightly firmer than expected Q4 CPI. The 0.4% increase lifted the year-over-year rate to 1.7% from 1.5%. This matches the Q4 14 rate and represents stabilization after falling to 1.3% in Q1 15.
There is a potential head and shoulders bottom in the Australian dollar. It is toying with the neckline near $0.7050. A convincing break of the neckline would give a measuring objective near $0.7250. This seems to be a bit of a stretch. We would peg nearby resistance near $0.7080-0.7100.”
(Market News Provided by FXstreet)