23 Jul 2015
AUD/NZD: Drops on RBNZ shallow 25bp cut, demand to resume?
FXStreet (Guatemala) - ="">AUD/NZD is currently trading at 1.1123 with a high of 1.1244 and a low of 1.1085.
AUD/NZD has fallen heavily in a relief rally in the bird after the ref="">RBNZ only cut 25bps while there had been a 40% consensus of a 50bps cut in the OCR. However, the RBNZ signalled for further easing down the line and that the currency needs to be lower.
The currency is very soft and imports and recessionary headwinds may not be favourable to accommodate such an aggressive move in respect to inflationary risks in a poor performing economy.
AUD/NZD was struggling with 1.1200 despite the uptrend from 1.1126 in the minor recovery from the headwinds of 1.1360. The Aussie remains soft vs the greenback and is delicate. July's downtrend has been over a 300 pip loss of ground to the greenback so far.
AUD/NZD technically neutral
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 fallen heavily in a relief rally in the bird after the ref="">RBNZ only cut 25bps while there had been a 40% consensus of a 50bps cut in the OCR. However, the RBNZ signalled for further easing down the line and that the currency needs to be lower.
The currency is very soft and imports and recessionary headwinds may not be favourable to accommodate such an aggressive move in respect to inflationary risks in a poor performing economy.
AUD/NZD was struggling with 1.1200 despite the uptrend from 1.1126 in the minor recovery from the headwinds of 1.1360. The Aussie remains soft vs the greenback and is delicate. July's downtrend has been over a 300 pip loss of ground to the greenback so far.
AUD/NZD technically neutral
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.