AUD/NZD back to the 1.0650 zone

FXstreet.com (Córdoba) - The AUD/NZD rose strongly on Wednesday during the Asian session following the release of inflation data from Australia and consolidate gains during the rest of the day, hovering around 1.0650.

AUD/NZD jumps and stabilizes

It took one day and another inflation report for the AUD/NZD to rise back to the 1.0650 area. On Tuesday the pair dropped sharply after New Zealand CPI data, and fell from 1.0650 to 1.0580 and on Wednesday after the Australian CPI data rose back to 1.0650. Both reports showed an acceleration in the inflation rate and were above expectations, pushing the Aussie and the Kiwi to the upside across the board.

After the rally, the AUD/NZD stabilized and started to moved sideways with support at 1.0635 and resistance at 1.0670 for the rest of the day. Early in Asia, the range still prevails.

NZ data ahead of another inflation report

The Business PMI, an indicator of business conditions in New Zealand was just released and come in at 56.4 in December, down from 56.7. The Kiwi moved marginally to the downside after the numbers while the AUD/NZD moved slightly away from the bottom of the current trading range.

In a two hours, in Australia the Melbourne Institute will release the Consumer Inflation Expectations for the month of December.

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