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AUD/NZD: better bid above 200 dma, targets Nov highs

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    AUD/NZD is riding the 20 sma on the 1hr sticks on the bid and having broken to the upside out of the sideways and slightly bearish trend of the consolidation of the upside rally from 1.0804 at the start of the month.

    The Aussie has the upper hand leading up to the RBNZ while commodity prices have come back and some, and the Australian economy is faring better than NZ's as observers expect action from the RBNZ at some stage to help spur the economy on a growth path that will achieve the Central Banks inflation target for this and next year. However, analysts at Westpac noted that the timing of interest rate cuts remains uncertain.

    Central Banks: BoC and RBNZ in focus - Westpac

    "While a case can be made for immediate action, we think the RBNZ's concerns about the housing market and its comfort with the rate of core inflation will stay its hand for now. The MPS though should show the interest rate forecast lowered significantly."

    AUD/NZD levels

    The market is well placed above the pivot at 1.0932 and is through the 200 dma at 1.0925. The price broke above recent highs of 1.0968 and is looking for a score on the 1.11 handle and through the 1.1086 23rd Nov high on the daily sticks. R2 is placed at 1.1113 and R3 at 1.1196. A reversal, on the wide, would target the daily gap on the 25th Feb and lows of 1.0670 on a break of S3 at 1.0800.
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