- AUD/NZD on the way to the 200-D SMA, technicals lean bullish.
- RBNZ seals the deal for the bulls, supported by the 21-D SMA and 50-D SMA.
This AUD/NZD cross found some supply near 1.0869, and has drifted lower off that level in NY ahead of the RBNZ. The cross took off on a dovish outcome and AUD/NZD hit a high of 1.0812, extending the bid from the daily 1.0657 lows. Currently, AUDNZD trades at 1.0811 as we enter Tokyo.
AUD/NZD was as low as 1.0782 ahead of the data by the close on NY where the Kiwi has otherwise picked up a pre RBNZ positioning bid, perking up from the 0.6777 lows vs the greenback, where otherwise, higher better and commodity-FX has been under mind by concerns over a fallout in China and the Chinese currency, not to mention ongoing tit for tat trade war spat between China and the US.
“Risk assets were supported in early trading, with President Trump opting to expand the scope of investigations by the Committee on Foreign Investment in the US, rather than invoking emergency measures to curb Chinese investment. This was seen as a conciliatory step following recent tensions. However, sentiment turned negative through the New York afternoon with US equities now back in the red after Kudlow said that the US has not softened its stance on China, “
analysts at ANZ explained.
RBNZ dovish outcome
- RBNZ leaves interest rate unchanged at 1.75%, direction of next move is equally balanced, up or down
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RBNZ statement more dovish at the margin – ANZ
AUD/NZD levels
AUD/NZD is consolidating the supply on an hourly basis with this bid from 1.0780 from 1.0855 while the 4hr RSI dips back below overbought readings, although daily sticks lean with a bullish bias still as the price approaches the 200-D SMA at 1.0864, supported by the convergence of the 21-D SMA and 50-D SMA at 1.0788 and 1.0758.
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