21 Jan 2014
AUD/NZD remains offered at 1.0570
FXstreet.com (Edinburgh) - The selling interest remains intact around the AUD/NZD on Tuesday, trading around 1.0570, levels last seen in December 2005.
AUD/NZD lower on Oz, NZ divergences
The opposite ways transiting the RBNZ and the RBA and the different situations from both economies are the main factors behind the current multi-year decent of the Pacific cross, meandering around 1.0570/75. However, extreme (short) positioning in the Aussie dollar and the likeliness of a rate hike by the RBNZ already priced in might give room for a correction higher in the very short term, although the broader picture would still be pointing southwards. Analysts at Danske Bank recommend “to position for a near-term rebound in AUD/NZD as positioning suggests potential for a temporary rebound in AUD and a re-pricing of RBNZ, as hikes have become too aggressively priced. We set a target at 1.09”.
AUD/NZD levels to watch
As of writing the cross is down 0.70% at 1.0579 with the next support at 1.0563 (low Jan.17) ahead of 1.0543 (low Jan.16) and then 1.0500 (psychological level). On the upside, a surpass of 1.0647 (high Jan.17) would open the door to 1.0694 (high Jan.16) and finally 1.0713 (high Jan.15).
AUD/NZD lower on Oz, NZ divergences
The opposite ways transiting the RBNZ and the RBA and the different situations from both economies are the main factors behind the current multi-year decent of the Pacific cross, meandering around 1.0570/75. However, extreme (short) positioning in the Aussie dollar and the likeliness of a rate hike by the RBNZ already priced in might give room for a correction higher in the very short term, although the broader picture would still be pointing southwards. Analysts at Danske Bank recommend “to position for a near-term rebound in AUD/NZD as positioning suggests potential for a temporary rebound in AUD and a re-pricing of RBNZ, as hikes have become too aggressively priced. We set a target at 1.09”.
AUD/NZD levels to watch
As of writing the cross is down 0.70% at 1.0579 with the next support at 1.0563 (low Jan.17) ahead of 1.0543 (low Jan.16) and then 1.0500 (psychological level). On the upside, a surpass of 1.0647 (high Jan.17) would open the door to 1.0694 (high Jan.16) and finally 1.0713 (high Jan.15).