3 Sep 2013
AUD/NZD consolidating around 1.1500 ahead of RBA
FXstreet.com (Barcelona) - The AUD/NZD foreign exchange cross rate is last trading around the 1.15 handle after a flat NY session with the US closed by Labor Day holiday few hours away of a very busy session down under starting with China non-manufacturing PMI and NZ commodity prices m/m at 01:00 GMT, followed by Australia retails sales and current account half hour later, and RBA cash rate statement at 04:30 GMT.
AUD/NZD looking for more downside
“Within the G10, we look for the USD to strengthen against currencies of economies where the central bank is easing, with AUD and JPY the obvious candidates,” said JP Morgan analyst Jan Loeys, adding: “Weakness in AUD will also be helped by Australia’s output gap becoming more negative, in contrast to New Zealand, where the output gap is becoming more positive. Even though we were stopped out of our tactical trade on the pair this week, we continue to think the market is not fully priced for the intensification of this divergence and thus look for more downside in AUD/NZD.”
AUD/NZD key technical levels
Immediate resistance to the upside for AUD/NZD shows at Thursday's highs 1.1526, followed by Monday's weekly highs at 1.1551, and August 23/26 highs at 1.1604/08. To the downside, closest support lies at recent session lows 1.1483, followed by August 12 highs at 1.1462, and July 25 lows at 1.1395.
AUD/NZD looking for more downside
“Within the G10, we look for the USD to strengthen against currencies of economies where the central bank is easing, with AUD and JPY the obvious candidates,” said JP Morgan analyst Jan Loeys, adding: “Weakness in AUD will also be helped by Australia’s output gap becoming more negative, in contrast to New Zealand, where the output gap is becoming more positive. Even though we were stopped out of our tactical trade on the pair this week, we continue to think the market is not fully priced for the intensification of this divergence and thus look for more downside in AUD/NZD.”
AUD/NZD key technical levels
Immediate resistance to the upside for AUD/NZD shows at Thursday's highs 1.1526, followed by Monday's weekly highs at 1.1551, and August 23/26 highs at 1.1604/08. To the downside, closest support lies at recent session lows 1.1483, followed by August 12 highs at 1.1462, and July 25 lows at 1.1395.