FXStreet (Guatemala) – AUD/NZD is currently trading at 1.1212 with a high of 1.1247 and a low of 1.1200.
AUD/NZD has been a chop since the start of the week and post the break of the bearish head and shoulders from the start of the month, with 1.1425 supply bottoming at 1.1181. We now await the RBA interest rate decision.
AUD/NZD price action ahead of RBA interest rate decision
AUD/NZD rallied towards the end of June’s business up to aforementioned levels before supply took the cross on its downward path below the neckline of the head and shoulders with 1.1280 acting as first real support ahead of 1.1220 where demand found the middle of the handle again. Friday’s closing high has been a target at 1.1236 for minor recovers from the post Greek referendum lows of 1.1181 while we sit within a sideways chop.
AUD/NZD fundamentals & technical picture
AUD/NZD has been better offered on the lead up to the RBA after markets took the Aussie down at the end of June, from 0.7737 to recent lows of 0.7462. Fundamentals surrounding the Australian economy will be revealed in the RBA’s statement tonight and this will be accompanying the RBA’s interest rate decision.
However, we are concerned for China’s growth outlook, albeit interest rate cuts temporarily supporting the Aussie, the commodity sector where copper has recently hit a 5 month low for example, a benign inflation gauge, Australia’s job market with a weak Capex outlook of late and of course continued jawboning of the currency. 0.75 has been the RBA’s preferred level which in fact has been met on the Greek debacle this week at a six year low, while investors seek safer havens but the RBA is likely to note this as an event rather than a shift in fundamentals. After tonight, focus will shift back to the Kiwi and RBNZ outlook while FOMC minutes will be next driver form this week’s calendar.
Technically, AUD/NZD has been camping out in bears territory with the hourly MA’s in the red and RSI (14) in neutral offering further room to the downside. 1.1180 acts as support at the height of the second leg of Junes bullish gap while bears will target 1.1110/30 guarding 1.1050.
(Market News Provided by FXstreet)