18 Feb 2015
AUD/NZD: Correction has more to multi week; target 1.0500
FXStreet (Guatemala) - AUD/NZD is currently trading at 1.0365 with a high of 1.0387 and a low of 1.0357.
AUD/NZD is attempting to maintain its form on the minor recovery but headwinds prevail ahead of the psychological 1.04 handle's level. Overnight we have seen some movement in the Kiwi and action came around the daily prices auction with a continuation of the rise in prices, supporting the bird.
Meanwhile, the theme remains the same with the Central Banks at play. The RBA, although less dovish than what markets might have been pricing into the minutes, the RBNZ is less likely to ease which gives the currency an edge, much to the dissatisfaction of the Central Bank.
Technically, Sean Callow, analyst at Westpac Banking Corporation said, "The pair should print new post-float lows near term, perhaps with a 1.02 handle. But our fair value estimate has been reasonably stable, holding around 1.08." they further added, "Hence we view AUD/NZD as in clear undershooting mode and expect a gradual recovery to 1.05 multi-week, with market pricing on the RBA already aggressive and relative commodity prices pointing to NZD strength being excessive (a view the RBNZ appears to share)."
AUD/NZD is attempting to maintain its form on the minor recovery but headwinds prevail ahead of the psychological 1.04 handle's level. Overnight we have seen some movement in the Kiwi and action came around the daily prices auction with a continuation of the rise in prices, supporting the bird.
Meanwhile, the theme remains the same with the Central Banks at play. The RBA, although less dovish than what markets might have been pricing into the minutes, the RBNZ is less likely to ease which gives the currency an edge, much to the dissatisfaction of the Central Bank.
Technically, Sean Callow, analyst at Westpac Banking Corporation said, "The pair should print new post-float lows near term, perhaps with a 1.02 handle. But our fair value estimate has been reasonably stable, holding around 1.08." they further added, "Hence we view AUD/NZD as in clear undershooting mode and expect a gradual recovery to 1.05 multi-week, with market pricing on the RBA already aggressive and relative commodity prices pointing to NZD strength being excessive (a view the RBNZ appears to share)."