FXStreet (Guatemala) – AUD/NZD has rallied out of sight of the consolidation of late with the recent CPI data from NZ giving us a shake up in early Asia.
AUD/NZD went from the lows of the recent hourly sticks lows of 1.0656 and has reached a high of 1.0796 so far while the CPI came as -0.5% vs -0.2% expected Q/Q Q4 vs 0.3% previous. Meanwhile, 0.1% y/y for the same quarter vs 0.4% expected and prior has left the bulls hung out to dry. The market was waiting for such a bad outcome as this to confirm speculations that indeed the RBNZ will need to do something sooner than later to the OCR.
Meanwhile, the Aussie has been doing a little better in a better risk environment as the Chinese crisis has been digested by investors now looking for a return on the otherwise idle capital parked in lower yielding trades and safer havens. AUD/USD recovered from 0.6841 yesterday in a continuation of the upside until the 200 sma on the hourly chart as first resistance at 0.6956 today.
AUD/NZD technically
AUD/NZD is technically in a bullish phase having recovered out of the downside move earlier this week when the pair went from current spot to reach as low as 1.0595. The price has just rallied through the 200 sma at 1.0678 on this move with ease and momentum now scored the high of 1.0796, through R3 at 1.0763, with a target of 1.0810 on the break of the handle to par the 14th Jan highs.
(Market News Provided by FXstreet)