21 Jan 2015
AUD/NZD: Spikes on NZ CPI, 5-week high
FXStreet (Bali) - AUD/NZD is up over one and a half cent in the last 24 hours of trading, with the disappointing NZ Q4 CPI data fueling further Kiwi sales across the board, sending the pair to a new 5-week high at 1.0711 after a 70 pip spike.
New Zealand Consumer Price Index (QoQ) came in below forecasts in 4Q, with the actual printing -0.2% vs 0% expected, while the YoY read came in at 0.8% vs 0.9% exp. The data should reinforce the case of a more cautious RBNZ, likely to remove the tightening bias from its policy statement going forward, and thus a reason to unload NZD.
Technically, the sky looks blue until 1.0760 resistance is faced, which means that dip buyer are expected to be quite active to capitalizing on the inefficient down gap seen last Dec 10 2014, time when the pair had a major gap down. On the downside, as long as buyers don't give up 1.06/1.0630 support - double top broken -, the constructive bias should prevail.
New Zealand Consumer Price Index (QoQ) came in below forecasts in 4Q, with the actual printing -0.2% vs 0% expected, while the YoY read came in at 0.8% vs 0.9% exp. The data should reinforce the case of a more cautious RBNZ, likely to remove the tightening bias from its policy statement going forward, and thus a reason to unload NZD.
Technically, the sky looks blue until 1.0760 resistance is faced, which means that dip buyer are expected to be quite active to capitalizing on the inefficient down gap seen last Dec 10 2014, time when the pair had a major gap down. On the downside, as long as buyers don't give up 1.06/1.0630 support - double top broken -, the constructive bias should prevail.