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18 Oct 2013
AUD/NZD upwards as “kiwi” devoid of momentum
FXstreet.com (Athens) – The AUD/NZD is heading upwards for a second consecutive day as while RBA’s seems not to proceed with any rate cuts at least – soon - the RBNZ will be probably the first central bank among the developed countries to proceed with a rate cut.
The early release of the Chinese GDP data led Australia’s S&P/ASX 200 to a fresh five year high, as the largest trading partner of Australia and the second largest economy all over the globe, grew by 7.8% the third quarter as of 2013, accelerating significantly from the previous one (7.5%). What’s more, RBA’s Stevens didn’t seem to be very concerned about “Aussie’s” recent sharp gains, while it is obvious that the RBA’s seems not to proceed with any rate cuts soon. On the opposite side, the “kiwi” is expected to be wounded immensely by an almost global expectation that the RBNZ decision for a rate-hike is approaching, while the broad expectation on a forthcoming solid correction on commodity prices has already started to hurt the “kiwi”. All in all, the cross upwards trend might also attributed to slight profit taking on “kiwi” pairs, after the vast recent gains of the $NZD crosses.
Technical Aspects on AUD/NZD
At the time of writing the cross is trading at 1.1370, up 0.18%. The FXstreet.com Trend Index shows the pair to be strongly bullish in the 15-minutes timeframe chart. Daily pivot point support can be found at 1.1330, 1.1300, 1.1273, and resistance at 1.1389, 1.1446 and 1.1487, respectively. Our personal aspect of view, is that as long US tapering is getting rather “later” than “sooner” and RBA’s Stevens finds no reason to sell the “Aussie”, the Australian dollar will continue to set up a bullish tone, dragging the cross on the upper level.
The early release of the Chinese GDP data led Australia’s S&P/ASX 200 to a fresh five year high, as the largest trading partner of Australia and the second largest economy all over the globe, grew by 7.8% the third quarter as of 2013, accelerating significantly from the previous one (7.5%). What’s more, RBA’s Stevens didn’t seem to be very concerned about “Aussie’s” recent sharp gains, while it is obvious that the RBA’s seems not to proceed with any rate cuts soon. On the opposite side, the “kiwi” is expected to be wounded immensely by an almost global expectation that the RBNZ decision for a rate-hike is approaching, while the broad expectation on a forthcoming solid correction on commodity prices has already started to hurt the “kiwi”. All in all, the cross upwards trend might also attributed to slight profit taking on “kiwi” pairs, after the vast recent gains of the $NZD crosses.
Technical Aspects on AUD/NZD
At the time of writing the cross is trading at 1.1370, up 0.18%. The FXstreet.com Trend Index shows the pair to be strongly bullish in the 15-minutes timeframe chart. Daily pivot point support can be found at 1.1330, 1.1300, 1.1273, and resistance at 1.1389, 1.1446 and 1.1487, respectively. Our personal aspect of view, is that as long US tapering is getting rather “later” than “sooner” and RBA’s Stevens finds no reason to sell the “Aussie”, the Australian dollar will continue to set up a bullish tone, dragging the cross on the upper level.