29 Apr 2015
AUD/NZD: Strong bull trend headed for consolidation
FXStreet (Guatemala) - AUD/NZD is currently trading at 1.0418 with a high of 1.0441 and a low of 1.0347.
AUD/NZD has been better bid for the month of April, and is starting to move in to a correction to the downside trend from the end of October last year. There is plenty to go yet and this may be seen as nothing more than a minor bounce in the medium term, although drivers for AUD weakness are starting to shift.
Meanwhile, today saw the greenback drop to its knee's on the back of the big miss in the GDP results as we head over to the FOMC statement. This is likely to indicate that June is off the table and could underpin the US dollars weakness, albeit without setting off any fire works today as that move has already been priced in with the likelihood of a dovish outcome in the statement.
We now await the RBNZ also coming up today and analysts at ANZ Bank explained, "A tonal shift from the RBNZ should weigh on the NZD as it cuts upside potential." Technically, should the cross therefor continue on its upwards trajectory, 1.0440 is the first hurdle to cross ahead of 1.0480 and 1.0508/20 (R2). On the 4 hour chart, the cross is above 70 and warns of a consolidation period on overbought conditions.
AUD/NZD has been better bid for the month of April, and is starting to move in to a correction to the downside trend from the end of October last year. There is plenty to go yet and this may be seen as nothing more than a minor bounce in the medium term, although drivers for AUD weakness are starting to shift.
Meanwhile, today saw the greenback drop to its knee's on the back of the big miss in the GDP results as we head over to the FOMC statement. This is likely to indicate that June is off the table and could underpin the US dollars weakness, albeit without setting off any fire works today as that move has already been priced in with the likelihood of a dovish outcome in the statement.
We now await the RBNZ also coming up today and analysts at ANZ Bank explained, "A tonal shift from the RBNZ should weigh on the NZD as it cuts upside potential." Technically, should the cross therefor continue on its upwards trajectory, 1.0440 is the first hurdle to cross ahead of 1.0480 and 1.0508/20 (R2). On the 4 hour chart, the cross is above 70 and warns of a consolidation period on overbought conditions.