7 Jul 2015
AUD/NZD shoots beyond 1.1200
FXStreet (Mumbai) - AUD/NZD turned positive and spiked to fresh session highs above 1.12 handle in the late-Asian session, on the back of NZD weakness while the Aussie erased most losses despite a slightly dovish RBA policy statement.
AUD/NZD bounces-off weekly lows
Currently, the AUD/NZD pair trades 0.25% higher at fresh session highs of 1.1242, rising from weekly lows reached at 1.1182. The pair jolted higher as the Australian dollar outperforms the New Zealand following RBA steady rate decision as traders completely ignored RBA’s talking down on the AUD.
The Reserve Bank of Australia (RBA) rate decision, keeping the overnight cash rate unchanged at 2%. RBA statement said, "Further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices."
Moreover, falling New Zealand dollar across the board on the back of recent series of downbeat NZ fundamentals also keeps the cross supported.
The latest NZ NZIER Quarterly Survey of Business Opinion shows the New Zealand economy losing momentum.
The drop in activity indicators in the June 2015 quarter points to annual growth remaining below 3% over the coming year – a marked drop from the 3.5% annual growth we saw at the end of last year.
AUD/NZD Technical Levels
The pair has an immediate resistance at 1.1268 levels, above which gains could be extended to 1.1306 levels. On the flip side, support is seen at 1.1182 (Today’s Low) levels from here it to 1.1118 levels.
AUD/NZD bounces-off weekly lows
Currently, the AUD/NZD pair trades 0.25% higher at fresh session highs of 1.1242, rising from weekly lows reached at 1.1182. The pair jolted higher as the Australian dollar outperforms the New Zealand following RBA steady rate decision as traders completely ignored RBA’s talking down on the AUD.
The Reserve Bank of Australia (RBA) rate decision, keeping the overnight cash rate unchanged at 2%. RBA statement said, "Further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices."
Moreover, falling New Zealand dollar across the board on the back of recent series of downbeat NZ fundamentals also keeps the cross supported.
The latest NZ NZIER Quarterly Survey of Business Opinion shows the New Zealand economy losing momentum.
The drop in activity indicators in the June 2015 quarter points to annual growth remaining below 3% over the coming year – a marked drop from the 3.5% annual growth we saw at the end of last year.
AUD/NZD Technical Levels
The pair has an immediate resistance at 1.1268 levels, above which gains could be extended to 1.1306 levels. On the flip side, support is seen at 1.1182 (Today’s Low) levels from here it to 1.1118 levels.