5 Feb 2014
AUD/NZD unravelling to the downside
FXStreet (Guatemala) - AUD/NZD has unravelled most of the spike from the 1.0820’s when the pair reached a high 1.0948. The pair has since fallen back falling back and trades currently at 1.0834.
Strategists at Rabobank noted that 10-year Aussies were up 7bp yesterday to 4.07% following the RBA decision to leave rates on hold at 2.50%, as universally expected, but to also shift to a clear neutral bias. “Given the recent data ‘shockers’ of weak December labour force and strong Q4 CPI, that outcome was not a surprise; however, recent market volatility, as well as the risks of a slowdown in China ahead – if they continue to crystallize, still suggest an eventual shift back towards an easing bias ahead”. Meanwhile, the New Zealand employment report for Q4 was released and fuelled the bulls fire, with the employment change at 1.1% vs 0.6% expected and 1.2% previous. The employment rate stood at 0.6% vs 6% expected and 6.2% prior. The Bird has since swooped below 0.8240 from supply on the spike. RSI (14) reads 43.68 while the short term EMA’s are offer a negative bias.
Strategists at Rabobank noted that 10-year Aussies were up 7bp yesterday to 4.07% following the RBA decision to leave rates on hold at 2.50%, as universally expected, but to also shift to a clear neutral bias. “Given the recent data ‘shockers’ of weak December labour force and strong Q4 CPI, that outcome was not a surprise; however, recent market volatility, as well as the risks of a slowdown in China ahead – if they continue to crystallize, still suggest an eventual shift back towards an easing bias ahead”. Meanwhile, the New Zealand employment report for Q4 was released and fuelled the bulls fire, with the employment change at 1.1% vs 0.6% expected and 1.2% previous. The employment rate stood at 0.6% vs 6% expected and 6.2% prior. The Bird has since swooped below 0.8240 from supply on the spike. RSI (14) reads 43.68 while the short term EMA’s are offer a negative bias.