3 Sep 2013
AUD/NZD ripping higher on apparent change in RBA’s monetary stance
FXstreet.com (Barcelona) - The AUD/NZD, which had been working lower recently, rallied sharply immediately following the release of the RBA’s interest rate policy statement.
RBA removes some language from their statement – dovish language
As traders and analysts parsed the words of the Reserve Bank of Australia’s interest rate policy statement, they came to the conclusion that the RBA was feeling good enough about things that they could remove some of the dovish language from the statement. Of course, the statement almost certainly prepared well-ahead of today’s lower retail sales data and weaker-than-expected Chinese data.
Technical outlook for AUD/NZD
Technicians are pointing to the 1.1540 “correction resistance” as the short-term level to monitor for the AUD/NZD. A breakout above that level opens up room to the upside all the way up to the recent high of 1.1590. A rejection at resistance, though, could lead to a move down to important support at today’s low of 1.1474.
RBA removes some language from their statement – dovish language
As traders and analysts parsed the words of the Reserve Bank of Australia’s interest rate policy statement, they came to the conclusion that the RBA was feeling good enough about things that they could remove some of the dovish language from the statement. Of course, the statement almost certainly prepared well-ahead of today’s lower retail sales data and weaker-than-expected Chinese data.
Technical outlook for AUD/NZD
Technicians are pointing to the 1.1540 “correction resistance” as the short-term level to monitor for the AUD/NZD. A breakout above that level opens up room to the upside all the way up to the recent high of 1.1590. A rejection at resistance, though, could lead to a move down to important support at today’s low of 1.1474.