8 May 2014
AUD/NZD: Bulls keep hopes of a LT double bottom
FXStreet (Bali) - AUD/NZD was able to build up on Tuesday's gains off 1.0650 by expanding further up towards a new high at 1.0787 ahead of Australian jobs data.
The recent comments by RBNZ Governor Wheeler>, threatening with the option to intervene in the currency market should a high NZD not weaken if fundamentals start to deteriorate, while also mentioning that the currency will be a factor in assessing rate rises, led to a major downturn in all things Kiwi last Wednesday. If we combine the fact that the Australian Dollar continues to find solid demand this year, the result is an AUD/NZD pair which still keeps the prospects of a possible long term double bottom just above 1.05 intact.
Technically, the AUD/NZD may find further room to run higher towards 1.0850-70 on an upbeat Aus jobs print, with a break of the April 28 swing high necessary to attempt another retest of 1.09. In the scenario that the Aus jobs report disappoints the market, watch for the area of support at 1.0725 to be threatened, with a break lower exposing deeper declines towards 1.0680 and 1.0650.
The recent comments by RBNZ Governor Wheeler>, threatening with the option to intervene in the currency market should a high NZD not weaken if fundamentals start to deteriorate, while also mentioning that the currency will be a factor in assessing rate rises, led to a major downturn in all things Kiwi last Wednesday. If we combine the fact that the Australian Dollar continues to find solid demand this year, the result is an AUD/NZD pair which still keeps the prospects of a possible long term double bottom just above 1.05 intact.
Technically, the AUD/NZD may find further room to run higher towards 1.0850-70 on an upbeat Aus jobs print, with a break of the April 28 swing high necessary to attempt another retest of 1.09. In the scenario that the Aus jobs report disappoints the market, watch for the area of support at 1.0725 to be threatened, with a break lower exposing deeper declines towards 1.0680 and 1.0650.