25 Jun 2015
AUD/NZD: Dropping in to the bears hands
FXStreet (Guatemala) - AUD/NZD is currently trading at 1.1186 with a high of 1.1195 and a low of 1.1164.
AUD/NZD has been very bid on the daily chart but has turned south overnight and dropped out of the slightly bullish drift of a channel that commenced earlier this month post the strong rally from 1.1080 post the rBNZ surprise rate cut.
However, Daniel Been, analyst at ANZ explained that AUD/NZD has rebounded sharply from its lows and is now somewhat better aligned with relative fundamentals. "With the easing cycle in New Zealand now under way, and with risks there continuing to point to a larger than expected easing cycle, the medium term direction for the AUD/NZD is still likely higher."
AUD/NZD: battle of the economies
Much will now depend on the course of data flows from both economies, and whether the australian economy can continue to improve having bitten the bullet first with an early rate cut that boosted some aspects of the economy, most noteworthily in the jobs sector. Technically, 1.1040 guards the downside to 1.0800. A break of 1.05 would bring back the parity argument in to the picture.
AUD/NZD has been very bid on the daily chart but has turned south overnight and dropped out of the slightly bullish drift of a channel that commenced earlier this month post the strong rally from 1.1080 post the rBNZ surprise rate cut.
However, Daniel Been, analyst at ANZ explained that AUD/NZD has rebounded sharply from its lows and is now somewhat better aligned with relative fundamentals. "With the easing cycle in New Zealand now under way, and with risks there continuing to point to a larger than expected easing cycle, the medium term direction for the AUD/NZD is still likely higher."
AUD/NZD: battle of the economies
Much will now depend on the course of data flows from both economies, and whether the australian economy can continue to improve having bitten the bullet first with an early rate cut that boosted some aspects of the economy, most noteworthily in the jobs sector. Technically, 1.1040 guards the downside to 1.0800. A break of 1.05 would bring back the parity argument in to the picture.