AUD/NZD jumps after RBNZ statement

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 27, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - The kiwi plummeted across the board following the decision of the Reserve Bank of New Zealand (RBNZ). AUD/NZD jumped more than 70 pips, rising from 1.0830 to 1.0914 and reached the highest level since December 9. The pair was trading near the highs, holding a bullish tone as the NZD tumbled across the board.

    So far, AUD/NZD is up by 150 pips from the level it had 24 hours ago, boosted during the Asian session by inflation numbers from Australia and recently by the RBNZ statement.

    The central bank left interest rate unchanged but weakened the kiwi by signaling that more easing may be required. “Monetary policy will continue to be accommodative. Some further policy easing may be required over the coming year to ensure that future average inflation settles near the middle of the target range”, said the RBNZ.

    AUD/NZD technical levels

    To the upside, resistance levels might be located at 1.0915 (daily high), 1.0960 (Dec 07 high) and 1.1000 (psychological). On the opposite direction, support might be located at 1.0870 (Asian session high), 1.0805 (intra-day low) and 1.0750 (Jan 26 & 27 low).
    For more information, read our latest forex news.

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