23 Jul 2015
AUD/NZD minor recovery commencing
FXStreet (Guatemala) - AUD/NZD is currently trading at 1.1138 with a high of 1.1244 and a low of 1.1085.
AUD/NZD has found support and is making a very minor recovery after the RBNZ only cutting 25bps, disappointing the 40% who were speculating for a 50bps cut in the OCR.
The bird was initially offered but found demand in relief that, for the time being at least, the RBNZ is allowing time for the increments of adjustments to take effect while otherwise, doing too much too soon would have sent highly bearish signals to the market in the face of recessionary headwinds while the currency remains soft. However, the RBNZ have left the door open for further action which "seems likely", in their words, and that the currency has further to fall.
AUD/NZD's price action had otherwise been recovering from the 1.1320 supply down to 1.12 short term support that was breached within 24hrs and fresh supply taking the pair down to 1.1125 lows before recovering to 1.1230 resistance.
AUD/NZD technically neutral/bullish bias longer term
The 21st July bullish hammer didn't serve its purpose and many market participants may have been on the wrong side of this move. However, as often as this scenario plays out, given the underlying fundamentals, a correction could be on the cards as liquidity comes in over the course of the week and the bird continues on its southernly trajectory. To the downside, the 1.11 handle comes as support ahead of congestion at 1.1020/50 guarding 1.0750 for the daily sticks and June rally. To the upside, 1.1250, guards another attempt to 1.1400 again.
AUD/NZD has found support and is making a very minor recovery after the RBNZ only cutting 25bps, disappointing the 40% who were speculating for a 50bps cut in the OCR.
The bird was initially offered but found demand in relief that, for the time being at least, the RBNZ is allowing time for the increments of adjustments to take effect while otherwise, doing too much too soon would have sent highly bearish signals to the market in the face of recessionary headwinds while the currency remains soft. However, the RBNZ have left the door open for further action which "seems likely", in their words, and that the currency has further to fall.
AUD/NZD's price action had otherwise been recovering from the 1.1320 supply down to 1.12 short term support that was breached within 24hrs and fresh supply taking the pair down to 1.1125 lows before recovering to 1.1230 resistance.
AUD/NZD technically neutral/bullish bias longer term
The 21st July bullish hammer didn't serve its purpose and many market participants may have been on the wrong side of this move. However, as often as this scenario plays out, given the underlying fundamentals, a correction could be on the cards as liquidity comes in over the course of the week and the bird continues on its southernly trajectory. To the downside, the 1.11 handle comes as support ahead of congestion at 1.1020/50 guarding 1.0750 for the daily sticks and June rally. To the upside, 1.1250, guards another attempt to 1.1400 again.