13 Nov 2013
AUD/NZD flat at 1.1310
FXstreet.com (Chicago) - AUD/NZD had a wild swing before falling flat around the 1.1310 zone ahead of Australian data and after the publication of the RBNZ financial stability report.
The RBNZ Financial Stability Report stated “banks are well capitalized and have strengthened their funding base, while non-performing loans continue to decline.” Governor Wheeler added The main threat to the financial system is the risk associated with imbalances in the housing market” adding “The household sector has high and rising levels of debt relative to both historical and international norms. Both households and banks are highly exposed to the housing market. Further, we have a situation where house prices are rising from already-overvalued levels, particularly in Auckland and Christchurch. This is increasing the risk of a future house price correction that could result in significant financial system stress.” Market participants expect the Westpac consumer confidence results at 23:30.
AUD/NZD Technical Levels
Price action reveals the pair is glued to immediate support after a wild swing to 1.1360 fronts. Offered at 1.1311, the pair oscillates between the supports aligned at 1.13 (October 16th lows), 1.1263 (October 4th lows) ahead of 1.12 (September 28th lows) and the resistances set at 1.1341 (October 9th lows), 1.14 (September 25th highs) followed by 1.1434 (November 2nd lows). According to the FXstreet.com trend index, the pair is strongly bearish on one-hour timeframe analysis flowing below the EMA20.
The RBNZ Financial Stability Report stated “banks are well capitalized and have strengthened their funding base, while non-performing loans continue to decline.” Governor Wheeler added The main threat to the financial system is the risk associated with imbalances in the housing market” adding “The household sector has high and rising levels of debt relative to both historical and international norms. Both households and banks are highly exposed to the housing market. Further, we have a situation where house prices are rising from already-overvalued levels, particularly in Auckland and Christchurch. This is increasing the risk of a future house price correction that could result in significant financial system stress.” Market participants expect the Westpac consumer confidence results at 23:30.
AUD/NZD Technical Levels
Price action reveals the pair is glued to immediate support after a wild swing to 1.1360 fronts. Offered at 1.1311, the pair oscillates between the supports aligned at 1.13 (October 16th lows), 1.1263 (October 4th lows) ahead of 1.12 (September 28th lows) and the resistances set at 1.1341 (October 9th lows), 1.14 (September 25th highs) followed by 1.1434 (November 2nd lows). According to the FXstreet.com trend index, the pair is strongly bearish on one-hour timeframe analysis flowing below the EMA20.