AUD/NZD finds buyers near 1.0840, neutral RBNZ still weighs

The cross in AUD/NZD is seen making minor recovery attempts, after having hit fresh three-day lows of 1.0842 amid fresh NZD buying on the back a neutral stance adopted by the RBNZ at policy decision announced earlier on the day.

AUD/NZD: Eyes on RBA’s Debelle

The spot surrendered 1.09 handle and eroded almost 60-pips rapidly after the Kiwi got a boost from the RBNZ’s status quo, while the central bank maintained a neutral policy stance, disappointing the doves, who expected a dovish twist, in the wake of NZ election uncertainties and recent weak fundamentals.

However, fresh bids emerged near the lower levels, taking the cross back above mid-1.08s, as the NZD/USD pair moved-off daily tops amid weaker oil prices and strengthening US dollar versus its main peers.

Meanwhile, the AUD/USD pair remains pressured amid losses in AUD/NZD, as markets remain unperturbed by upbeat Aus job vacancies for Aug, which arrived at 6.0% versus prev 1.5%.

Attention now turns towards the speech by the RBA Assistant Governor Debelle due later in Europe. In the meantime, markets continue to digest the RBNZ policy outcome.

AUD/NZD Technical View    

Analysts at Westpac explain, “AUD/NZD 1 day: NZ election uncertainty appears to be fully priced, the cross now responding more to other factors such as iron ore’s decline. The 1.0830 area is a near term target. AUD/NZD 1-3 month: A retest of the 1.1200 area seen in April is possible if iron ore’s rally since mid-June continues and global risk sentiment remains elevated. (4 Sep).”