10 Dec 2013
AUD/NZD losing 1.10 handle
FXstreet.com (London) - AUD/NZD has been losing the handle in the latter part of the US session, dropping its opening gains.
Post NFP, some markets extended reaction slightly (US equities, dollar and interest rates) while others corrected slightly (AUD/USD, NZD/USD). The bird has performed the best while Fed speak from hawks Lacker and Fisher (further stimulus should have limited impact, time to start unwinding QE) was balanced by dove.
AUD and NZD price action
Strategists at Westpac noted that AUD/USD extended its domestic session correction to 0.9070 and then ranged between there and 0.9114. NZD similarly fell from 0.8300 to 0.8258 then steadied around 0.8280. “There was a curious rally on the RBNZ announcement that restrictions would not apply to low deposit housing loans made for new construction. AUD/NZD made a fresh five year low of 1.0950 early London and then rebounded to 1.0990”. The pair has since climbed to a high of 1.1002 and has been on the decent with a low of 1.0961 and catching bounce there.
Post NFP, some markets extended reaction slightly (US equities, dollar and interest rates) while others corrected slightly (AUD/USD, NZD/USD). The bird has performed the best while Fed speak from hawks Lacker and Fisher (further stimulus should have limited impact, time to start unwinding QE) was balanced by dove.
AUD and NZD price action
Strategists at Westpac noted that AUD/USD extended its domestic session correction to 0.9070 and then ranged between there and 0.9114. NZD similarly fell from 0.8300 to 0.8258 then steadied around 0.8280. “There was a curious rally on the RBNZ announcement that restrictions would not apply to low deposit housing loans made for new construction. AUD/NZD made a fresh five year low of 1.0950 early London and then rebounded to 1.0990”. The pair has since climbed to a high of 1.1002 and has been on the decent with a low of 1.0961 and catching bounce there.