28 Apr 2016
AUD/NZD: bears take control towards 200 dma 1.0934
AUD/NZD has penetrated below the support line of the psychological 1.10 handle after the Kiwi rallied on the RBNZ statement.
The market was caught short and a squeeze higher trigger stops no doubt exacerbated the move higher. What has come to light is that the market was positioned for and looking for hints that the RBNZ would be more than likely cutting in June, but that did not come and the bird simply took off and has the back-drop of yesterdays CPI Q1 for Australia as a foundation to keep going.
AUD/NZD levels
AUD/NZD is headed towards the 200 ma at 1.0934 with the 100 dma at 1.0888 (6th March low), both as key downside supporting targets while the upside trend has already been snapped with 28th Jan highs broken at 1.0970. a reversal and a convincing bullish case would need to come from closes on the 1.13 handle.
The market was caught short and a squeeze higher trigger stops no doubt exacerbated the move higher. What has come to light is that the market was positioned for and looking for hints that the RBNZ would be more than likely cutting in June, but that did not come and the bird simply took off and has the back-drop of yesterdays CPI Q1 for Australia as a foundation to keep going.
AUD/NZD levels
AUD/NZD is headed towards the 200 ma at 1.0934 with the 100 dma at 1.0888 (6th March low), both as key downside supporting targets while the upside trend has already been snapped with 28th Jan highs broken at 1.0970. a reversal and a convincing bullish case would need to come from closes on the 1.13 handle.