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21 Aug 2015
AUD/NZD headed back to 1.14 by year end?
FXStreet (Guatemala) - AUD/NZD is currently trading at 1.1086 with a high of 1.1091 and a low of 1.1054.
AUD/NZD is on the rise, recovering from the downside of 1.1092 highs of London trade overnight. The cross has been in a sideways consolidation of the 1.1303 downtrend of the 14th of this month and failing best vs the strength of the greenback. The kiwi got an extra more recently boost from a relief rally when the GDT auction prices stabilised and rose more than 10% earlier in the week where otherwise, Fonterra had signalled a reduction of supply of whole milk powder by as much as a third.
RBNZ coming back in focus
The market will soon move towards the forthcoming RBNZ which may stay to weigh on the bird given there could be reason for further action from the Central bank, where the more dovish side of the market were let down when the RBNZ only cut by 25 basis points and not 50, leaving room for further accommodation later in the year.
Nothing new from RBA==<==/strong>
In respect of the Aussie, it has fallen around 4.5c to just over $US0.7215 in the past month, but has started to stabilise vs the greenback. The most recent RBA minutes basically repeated what the central bank had said in its quarterly monetary policy statement that interest rate policy is on hold, and at the needed accommodation can be delivered through the weaker currency.
While the greenback unwinds, both the AUD and NZD will continue to find support, but are both subject to Chinese risks and downside risks in the commodity sector, and data releases such as the jobs data, where Australia is fairing well at the moment, will play their part in supporting the currencies at historically low rates.
AUD/NZD buy on dips 1.0750/1.0850
Sean Callow, analyst at Westpac Banking Corporation explained that the AUD/NZD should stay heavy near term in the wake of RBNZ commentary erring on the optimistic side and thus dampening rate cut expectations. "But we expect the NZ economy to disappoint the RBNZ while the RBA defies rate cut pricing, helping AUD/NZD find buyers on dips to the 1.0750/1.0850 area multi-week, with scope back to 1.14 in Q4."
AUD/NZD is on the rise, recovering from the downside of 1.1092 highs of London trade overnight. The cross has been in a sideways consolidation of the 1.1303 downtrend of the 14th of this month and failing best vs the strength of the greenback. The kiwi got an extra more recently boost from a relief rally when the GDT auction prices stabilised and rose more than 10% earlier in the week where otherwise, Fonterra had signalled a reduction of supply of whole milk powder by as much as a third.
RBNZ coming back in focus
The market will soon move towards the forthcoming RBNZ which may stay to weigh on the bird given there could be reason for further action from the Central bank, where the more dovish side of the market were let down when the RBNZ only cut by 25 basis points and not 50, leaving room for further accommodation later in the year.
Nothing new from RBA==<==/strong>
In respect of the Aussie, it has fallen around 4.5c to just over $US0.7215 in the past month, but has started to stabilise vs the greenback. The most recent RBA minutes basically repeated what the central bank had said in its quarterly monetary policy statement that interest rate policy is on hold, and at the needed accommodation can be delivered through the weaker currency.
While the greenback unwinds, both the AUD and NZD will continue to find support, but are both subject to Chinese risks and downside risks in the commodity sector, and data releases such as the jobs data, where Australia is fairing well at the moment, will play their part in supporting the currencies at historically low rates.
AUD/NZD buy on dips 1.0750/1.0850
Sean Callow, analyst at Westpac Banking Corporation explained that the AUD/NZD should stay heavy near term in the wake of RBNZ commentary erring on the optimistic side and thus dampening rate cut expectations. "But we expect the NZ economy to disappoint the RBNZ while the RBA defies rate cut pricing, helping AUD/NZD find buyers on dips to the 1.0750/1.0850 area multi-week, with scope back to 1.14 in Q4."