After the continued dovish comments from the RBA, as well as the divergence in central bank expectations in terms of tapering, as well as iron ore prices looking a bit vulnerable, we anticipated more downside for the AUDNZD.
However, after breaking out of a squeeze last week, the pair found some solid resistance close to 1.830 and has seen quite the push lower at the start of the week. The move has been mostly attributed to yet another dovish stance from Governor Lowe earlier during the Asia Pac session, as well as comments from the Australian Health Minister that said he sees the start of a third wave of virus cases.
With this in mind, we would expect the AUDNZD to remain pressured in the short term, and due to the divergence between tapering expectations between the RBA and RBNZ, there should be a skew to the downside med term as well.
We have jobs data for Australia as well as GDP data due for NZ later this week so keep that in mind.
However, after breaking out of a squeeze last week, the pair found some solid resistance close to 1.830 and has seen quite the push lower at the start of the week. The move has been mostly attributed to yet another dovish stance from Governor Lowe earlier during the Asia Pac session, as well as comments from the Australian Health Minister that said he sees the start of a third wave of virus cases.
With this in mind, we would expect the AUDNZD to remain pressured in the short term, and due to the divergence between tapering expectations between the RBA and RBNZ, there should be a skew to the downside med term as well.
We have jobs data for Australia as well as GDP data due for NZ later this week so keep that in mind.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.