30 Jul 2013
AUD/NZD pounding out more new lows after Australia’s Stevens’ dovish speech
FXstreet.com (Barcelona) - The Reserve Bank of Australia’s Governor Glenn Stevens’ speech to The Anika Foundation did nothing to alter the uber-bearish trend in the AUD/NZD Tuesday. Rather, it served only to intensify the selling in the cross.
Stevens’ dovish speech crushed an already weak AUDNZD
The AUD/NZD came into Tuesday’s trading session at around 1.1450, down from above 1.2500 in March and from over 1.3000 a year ago. So, plenty of damage has been done to the bulls along the way. The decline has served to highlight the stark difference in the countries’ economies and monetary philosophies. Australia has been battling the specter of a diminishing resources-based economy due to the slowing rate of growth in China among other things.
Stevens’ speech, though, pointed out the lackluster indicators that he and his associates were seeing from across all sectors of their economy. Steven’s speech was perfectly clear to all readers / listeners – Australia’s RBA has their foot firmly planted on the stimulative / accommodative gas pedal and they have no plans at this point to remove it.
Technicians say to use any oversold bounces to sell AUD/NZD
Technicians are nearly universally bearish on the AUD/NZD, but warn of sudden oversold rallies. They say to wait for such rallies to sell into for those not yet short of this cross Tim Thielen, CMT and author of The Sea Change Report, says that a move all the way down to 1.0823 is likely to happen over time.
Short-term resistance for AUD/NZD comes in at Friday’s high of 1.1494 and is backed by the 7/19 intraday low at 1.1543. Short-term support for AUD/NZD was some short-term Fibonacci-based potential support at 1.13742 – but that is in jeopardy already this morning. Beyond that, the next Fibonacci projection is down at 1.1253.
Stevens’ dovish speech crushed an already weak AUDNZD
The AUD/NZD came into Tuesday’s trading session at around 1.1450, down from above 1.2500 in March and from over 1.3000 a year ago. So, plenty of damage has been done to the bulls along the way. The decline has served to highlight the stark difference in the countries’ economies and monetary philosophies. Australia has been battling the specter of a diminishing resources-based economy due to the slowing rate of growth in China among other things.
Stevens’ speech, though, pointed out the lackluster indicators that he and his associates were seeing from across all sectors of their economy. Steven’s speech was perfectly clear to all readers / listeners – Australia’s RBA has their foot firmly planted on the stimulative / accommodative gas pedal and they have no plans at this point to remove it.
Technicians say to use any oversold bounces to sell AUD/NZD
Technicians are nearly universally bearish on the AUD/NZD, but warn of sudden oversold rallies. They say to wait for such rallies to sell into for those not yet short of this cross Tim Thielen, CMT and author of The Sea Change Report, says that a move all the way down to 1.0823 is likely to happen over time.
Short-term resistance for AUD/NZD comes in at Friday’s high of 1.1494 and is backed by the 7/19 intraday low at 1.1543. Short-term support for AUD/NZD was some short-term Fibonacci-based potential support at 1.13742 – but that is in jeopardy already this morning. Beyond that, the next Fibonacci projection is down at 1.1253.