29 Jan 2015
AUD/NZD has the green light for 1.0800
FXStreet (Guatemala) - "AUD/NZD has been given the green light to breech 1.0800", as Imre Speizer, analyst at Westpac Banking Corporation suggests.
AUD/NZD is bid, trading at 1.0780, up from 1.0578 the overnight lows in the US shift on the back of the RBNZ's rate decision and tone of language and a decision to remove the sentence “Some further increase in the OCR is expected to be required at a later stage" from its subsequent press releases, keeping the OCR on hold and stating that they will do so for some time.
Accompanying such rhetoric was the jawboning of the Kiwi and statements eluding to a lower NZD, with comments such as, "...remains unjustified in terms of current economic conditions...and unsustainable in terms of New Zealand’s long-term economic fundamentals".
AUD/NZD next call through such a level as previously advised is apparently August 2014 lows at 1.0910 before 1.0980 congestion, but markets will not be in a hurry to get there with the RBA looming and risk of yet further Central Bank dovishness, let alone actual action in tentative rate cuts, mirroring the surprise BoC. Trading with caution is likely to be the theme around this cross for the time being.
AUD/NZD is bid, trading at 1.0780, up from 1.0578 the overnight lows in the US shift on the back of the RBNZ's rate decision and tone of language and a decision to remove the sentence “Some further increase in the OCR is expected to be required at a later stage" from its subsequent press releases, keeping the OCR on hold and stating that they will do so for some time.
Accompanying such rhetoric was the jawboning of the Kiwi and statements eluding to a lower NZD, with comments such as, "...remains unjustified in terms of current economic conditions...and unsustainable in terms of New Zealand’s long-term economic fundamentals".
AUD/NZD next call through such a level as previously advised is apparently August 2014 lows at 1.0910 before 1.0980 congestion, but markets will not be in a hurry to get there with the RBA looming and risk of yet further Central Bank dovishness, let alone actual action in tentative rate cuts, mirroring the surprise BoC. Trading with caution is likely to be the theme around this cross for the time being.