2 Dec 2014
AUD/NZD struggles on rebounds to 1.0800
FXStreet (Guatemala) - AUD/NZD is trading at 1.0776, down -0.17% on the day, having posted a daily high at 1.0809 and low at 1.0777.
AUD/NZD remains on the back-foot, despite a lift from the Australia building approvals for October that read an impressive 11.4% m/m vs the expected 5.0% and beating previous -11.2%. 1.0800 is proving a real challenge for the bulls and pressures are mounting on the downside ahead of the RBA and statement, with those usual expectations that the RBA will leave the official cash rate unchanged at 2.5% with a likely mention that the Aussie is overvalued fundamentally.
The risk however ahead for the Kiwi will stay to a small degree with the RBNZ this month, although it is not expected that they will take any action until the end of 2015 listening to Wheeler talking down the Kiwi and the Central Banks intent in remaining with their inflation target policy. And then the global milk prices remain a factor that continues to disappoint of recent months and weigh on the bird. Nevertheless, there could begin to be a divergence between the RBA and RBNZ into 2015 and that eventuality will continue to weigh on the cross between the two domestic currencies.
AUD/NZD remains on the back-foot, despite a lift from the Australia building approvals for October that read an impressive 11.4% m/m vs the expected 5.0% and beating previous -11.2%. 1.0800 is proving a real challenge for the bulls and pressures are mounting on the downside ahead of the RBA and statement, with those usual expectations that the RBA will leave the official cash rate unchanged at 2.5% with a likely mention that the Aussie is overvalued fundamentally.
The risk however ahead for the Kiwi will stay to a small degree with the RBNZ this month, although it is not expected that they will take any action until the end of 2015 listening to Wheeler talking down the Kiwi and the Central Banks intent in remaining with their inflation target policy. And then the global milk prices remain a factor that continues to disappoint of recent months and weigh on the bird. Nevertheless, there could begin to be a divergence between the RBA and RBNZ into 2015 and that eventuality will continue to weigh on the cross between the two domestic currencies.