4 Aug 2015
AUD/NZD: a big week for the bird
FXStreet (Guatemala) - AUD/NZD is currently trading at 1.1080 with a high of 1.1123 and a low of 1.1067.
Further to recovery in the bird, the cross was rallying earlier on the back of Origin Energy selling a 53 per cent stake in NZ power company, Contact Energy. This equated to a cent high run the cross when NZD 1.8b was dumped on the market and traded vs the Aussie. This activity came ahead of the RBA today. Bulls were forced in to submission from 1.1119 until 1.1080 support ahead of Australian retail sales and trade balance coming up ahead of the RBA decision.
NZD subdued on commodity prices
The bird was soft again in recent trade with the NZ commodity price index falling to -11.2pct in July and to make matters worse for the bird, with a slow down in Chinese demand, futures markets are pricing in a 10% fall in whole milk powder prices at tomorrows GlobalDairyTrade (GDT) auction which will crucial for where Fonterra's forecast is pitched on Friday. We will also await the labour costs and the unemployment data. Technically, 1.0920 and 1.1120 are the key levels to monitor with 1.1140 to the upside guarding 1.1200 and 1.0900 guarding space towards 1.0760.
Further to recovery in the bird, the cross was rallying earlier on the back of Origin Energy selling a 53 per cent stake in NZ power company, Contact Energy. This equated to a cent high run the cross when NZD 1.8b was dumped on the market and traded vs the Aussie. This activity came ahead of the RBA today. Bulls were forced in to submission from 1.1119 until 1.1080 support ahead of Australian retail sales and trade balance coming up ahead of the RBA decision.
NZD subdued on commodity prices
The bird was soft again in recent trade with the NZ commodity price index falling to -11.2pct in July and to make matters worse for the bird, with a slow down in Chinese demand, futures markets are pricing in a 10% fall in whole milk powder prices at tomorrows GlobalDairyTrade (GDT) auction which will crucial for where Fonterra's forecast is pitched on Friday. We will also await the labour costs and the unemployment data. Technically, 1.0920 and 1.1120 are the key levels to monitor with 1.1140 to the upside guarding 1.1200 and 1.0900 guarding space towards 1.0760.