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11 Jun 2014
AUD/NZD stalling on the downside sub 1.1000
FXStreet (Guatemala) - AUD/NZD is trading at 1.0990, down -0.01% on the day, having posted a daily high at 1.0999 and low at 1.0984.
AUD/NZD is holding above the 200 days sma close to a 5 mth high, as note d by Jane Foley, Senior Currency Strategist at Rabobank. She explained that the market has fully priced in a 25 bp rate hike from the RBNZ on June 11. “This would be the third hike of the cycle. Crucial, however, will be the direction offer by the RBNZ in its statement. Currently the market is anticipating a fourth rate hike by the end of the year”. However, shr added that a clear weakening in diary prices at the Fonterra fortnightly auctions and some signs of slowing growth in activity suggests that the RBNZ could signal a pause in tightening potentially through the remainder of the year which could trigger further adjustment by the NZD bulls. “Near term we would favour buying dips in AUD/NZD”.
AUD/NZD Levels
Spot is presently trading at 1.0991, and next resistance can be seen at 1.0992 (Daily Open), 1.0995 (Hourly 100 SMA), 1.0999 (Daily High), 1.0999 (Hourly 20 EMA) and 1.1003 (Daily Classic PP). Next support to the downside can be found at 1.0985 (Yesterday's Low), 1.0984 (Daily Low), 1.0982 (Weekly Low), 1.0981 (Daily Classic S1) and 1.0980 (Weekly Classic PP).
AUD/NZD is holding above the 200 days sma close to a 5 mth high, as note d by Jane Foley, Senior Currency Strategist at Rabobank. She explained that the market has fully priced in a 25 bp rate hike from the RBNZ on June 11. “This would be the third hike of the cycle. Crucial, however, will be the direction offer by the RBNZ in its statement. Currently the market is anticipating a fourth rate hike by the end of the year”. However, shr added that a clear weakening in diary prices at the Fonterra fortnightly auctions and some signs of slowing growth in activity suggests that the RBNZ could signal a pause in tightening potentially through the remainder of the year which could trigger further adjustment by the NZD bulls. “Near term we would favour buying dips in AUD/NZD”.
AUD/NZD Levels
Spot is presently trading at 1.0991, and next resistance can be seen at 1.0992 (Daily Open), 1.0995 (Hourly 100 SMA), 1.0999 (Daily High), 1.0999 (Hourly 20 EMA) and 1.1003 (Daily Classic PP). Next support to the downside can be found at 1.0985 (Yesterday's Low), 1.0984 (Daily Low), 1.0982 (Weekly Low), 1.0981 (Daily Classic S1) and 1.0980 (Weekly Classic PP).