25 Jul 2013
AUD/NZD plunges to 5-year lows on RBNZ decision
FXstreet.com (New York) - The AUD/NZD technical cross careened off a cliff Thursday morning, plunging towards new lows after the recent RBNZ inaction.
In New Zealand, the RBNZ interest rate was held at 2.5%, which matched consensus expectations. Reserve Bank Governor Graeme Wheeler noted, “The global outlook remains mixed, with the euro area still in recession and signs of slower growth in China and Australia, but more positive recent indicators in the United States and Japan. Global debt markets have become more cautious due to uncertainty around the Federal Reserve’s anticipated exit from quantitative easing.
AUD/NZD technical bias
In these moments, the AUD/NZD is now operating at 1.1509 Thursday morning, incurring a loss of -0.31% off its opening during Asian trading. Technically speaking, the cross is in escape velocity, having breached support at 1.1545 (20-day SMA), and will look to stabilize at the 1.5100 support.
In New Zealand, the RBNZ interest rate was held at 2.5%, which matched consensus expectations. Reserve Bank Governor Graeme Wheeler noted, “The global outlook remains mixed, with the euro area still in recession and signs of slower growth in China and Australia, but more positive recent indicators in the United States and Japan. Global debt markets have become more cautious due to uncertainty around the Federal Reserve’s anticipated exit from quantitative easing.
AUD/NZD technical bias
In these moments, the AUD/NZD is now operating at 1.1509 Thursday morning, incurring a loss of -0.31% off its opening during Asian trading. Technically speaking, the cross is in escape velocity, having breached support at 1.1545 (20-day SMA), and will look to stabilize at the 1.5100 support.