FXStreet (Guatemala) – AUD/NZD is currently steady after the RBNZ cut rates as expected by 25bp’s and left the Kiwi exposed to the downside.
AUD/NZD went from 1.0982 to 1.1065 on the release with some hesitation to back to 1.1007 before a decisive bull run to the highs of 1.1126. The key takeaway was that the bird is likely to go lower on the RBNZ’s opinion and they are leaving the door open to further and substantial rate cuts depending on data. In the press conference Wheeler explained that they are monitoring house prices in Auckland, the price of the Yuan and said that a sustained El Niño could have a big impact.
AUD/NZD turning more positive
AUD/NZD daily MACD is turning more positive towards 0.0000 from -0.0022 this month. There is room to go to the topside before the significant resistance at 1.1178 and 1.1221. The pair is in positive territory while above the 200 SMA on the hourly sticks, but requires closes above 1.1130.
(Market News Provided by FXstreet)