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28 Jan 2015
AUD/NZD: Bullish profile, resistance 1.0765 key
FXStreet (Bali) - The Aussie is flying higher across the board after a better-than-expected Australian Q4 trimmed mean CPI, at +0.7% q/q and 2.2% y/y VS 0.5% q/q and 2.2% y/y expected, resulting on lower expectations for an RBA rate cut in February.
Against the New Zealand Dollar, the Aussie surged to a session high of 1.0738, still unable to match the highest level for the year, reached last Jan 22 at 1.0762. With the RBNZ monetary policy due on Thursday (NZ morning time / 00 GMT or 1h after FOMC), chances are that the exchange rate will struggle around the key resistance 1.0760/65 ahead of the key risk event for NZD traders, likely to be sidelined until then.
Technically, the pair could be potentially building a second impulsive leg up, with the need to break through 1.0760/65 in order to enhance the bullish outlook. It will be key to see the mentioned level acting as support should it be reclaimed, which if true, would pave the way for an exposure of 1.0870, next big resistance. On the downside, sellers have plenty of work to do, with the next mission maintaining the rate below 1.0760/65 to keep the profile more neutral going forward, while only below 1.05 would see sellers get the upper-hand once again, although techs are far from suggesting so.
Against the New Zealand Dollar, the Aussie surged to a session high of 1.0738, still unable to match the highest level for the year, reached last Jan 22 at 1.0762. With the RBNZ monetary policy due on Thursday (NZ morning time / 00 GMT or 1h after FOMC), chances are that the exchange rate will struggle around the key resistance 1.0760/65 ahead of the key risk event for NZD traders, likely to be sidelined until then.
Technically, the pair could be potentially building a second impulsive leg up, with the need to break through 1.0760/65 in order to enhance the bullish outlook. It will be key to see the mentioned level acting as support should it be reclaimed, which if true, would pave the way for an exposure of 1.0870, next big resistance. On the downside, sellers have plenty of work to do, with the next mission maintaining the rate below 1.0760/65 to keep the profile more neutral going forward, while only below 1.05 would see sellers get the upper-hand once again, although techs are far from suggesting so.