AUD/NZD sinking to kick off the new week, Aussie continues to struggle
- AUD, NZD suffering but the AUD suffering a little bit worse.
- RBA, RBNZ rate news this week promise some volatility in the near future.
The AUD/NZD is lacking a direction in the early week, currently testing back into the waters near 1.0670 following a quick lift to 1.0692.
Interest rate week at the RBNZ
The Aussie will see the Reserve Bank of Australia's (RBA) Meeting Minutes from the interest rate decision two weeks ago. A lack of movement in interest rates from the RBA is already well priced in, but traders will be looking into the central bank's internal dialogue to get an idea of when the first rate hike could be coming down the pipe. The RBA's minutes hit early on Tuesday at 01:30 GMT. The Reserve Bank of New Zealand (RBNZ) will also be making a showing this week with their Interest Rate Decision as well as their Rate Statement late Thursday at 20:00 GMT. Both the RBA and the RBNZ have struggled under disappointing growth figures, and both central banks are widely expected to not see any rate increases well into the future.
Risk appetite, or a lack thereof, is wreaking havoc on the AUD and the NZD, with trade war fears and the Japanese land sale scandal weighing heavily on the commodity-based assets last week. This week is shaping up to promise more of the same with headlines continuing to pour out over tyhe weekend with Trump's planned tariffs targeting China and a large number of people holding the Japanese Prime Minister, Shinzo Abe, personally responsible for the document forging scandal that has brought the Japanese Parliament to its knees.
AUD/NZD Technicals
Both currencies are struggling in the broader currency bloc, but the Aussie has come out on top as the bigger loser, and the AUD/NZD pair fell from 1.0800 (March's high) last week, and the pair is set to challenge 1.0660 (March's low) if bearish pressure on the Aussie continues. Intraday support is currently sitting at 1.0670 (support zone) with resistance at 1.0710 (previous swing lows).