19 Feb 2015
AUD/NZD: 1.0500 comes as bulls target medium term
FXStreet (Guatemala) - AUD/NZD is currently trading at 1.0338 with a high of 1.0368 and a low of 1.0338.
AUD/NZD has been consolidating the downside below 1.0400 and supported in the main at 1.0330. The cross is trading with a bearish bias while the Central Banks divergence remains with the RBA open to further cuts this year, albeit no suggestions of one coming so soon as the next meeting while the RBNZ threw cold water over any idea of a rate cut in the near future.
Sean Callow, analyst at Westpac Banking Corporation explained, "AUD/NZD is in clear undershooting mode and expect a gradual recovery to 1.05 multi-week, with market pricing on the RBA already aggressive and relative commodity prices pointing to NZD strength being excessive (a view the RBNZ appears to share)."
AUD/NZD has been consolidating the downside below 1.0400 and supported in the main at 1.0330. The cross is trading with a bearish bias while the Central Banks divergence remains with the RBA open to further cuts this year, albeit no suggestions of one coming so soon as the next meeting while the RBNZ threw cold water over any idea of a rate cut in the near future.
Sean Callow, analyst at Westpac Banking Corporation explained, "AUD/NZD is in clear undershooting mode and expect a gradual recovery to 1.05 multi-week, with market pricing on the RBA already aggressive and relative commodity prices pointing to NZD strength being excessive (a view the RBNZ appears to share)."