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19 Mar 2014
AUD/NZD trading below the pivot with bearish bias
FXStreet (Guatemala) - Markets are focussing, in the main, on the Ukrainian crisis and AUD/NZD has not been much of an event throughout the European or US session. However, the NZD in itself has performed quite well, up against the dollar and stronger against the AUD.
AUD/NZD has 1.0569 as its lowest point in the US. A non moving market event but worth noting all the same as being the only data releases on the cards for today was New Zealand’s Current Account (QoQ) for Q4 that read $-1.430B vs a consensus of $-1.409B. We are reminded today by strategists at TD Securities that the RBA Minutes from 4th March were released yesterday. “No major changes in RBA thinking were evident but the minutes reaffirm some hawkish elements from its 4th March statement, in particular noting the housing market is strong and will remain firm over coming quarters. The RBA is not concerned by these trends, nor does it believe housing activity has turned speculative but did suggest risk appetite and borrowing trends need to be monitored. Consistent with the RBA’s view that the gains in housing pose no threat, the RBA did mention ‘’cash rates could remain at current levels for some time”’.
AUD/NZD bearish bias
Meanwhile, on the weekly chart the downtrend is very much still intact but offers some room to go before meeting the descending resistance line from and unless there is a convincing breakout to the downside, a pull back towards that resistance could be something for the bulls to buy into. The price formation on the shorter term charts is offering a channel that could be tested either way and if it is broken to the upside, then that resistance line aforementioned could be targeted. Meanwhile, the charts are offering a bearish bias and the price is trading below the picot point currently.
AUD/NZD has 1.0569 as its lowest point in the US. A non moving market event but worth noting all the same as being the only data releases on the cards for today was New Zealand’s Current Account (QoQ) for Q4 that read $-1.430B vs a consensus of $-1.409B. We are reminded today by strategists at TD Securities that the RBA Minutes from 4th March were released yesterday. “No major changes in RBA thinking were evident but the minutes reaffirm some hawkish elements from its 4th March statement, in particular noting the housing market is strong and will remain firm over coming quarters. The RBA is not concerned by these trends, nor does it believe housing activity has turned speculative but did suggest risk appetite and borrowing trends need to be monitored. Consistent with the RBA’s view that the gains in housing pose no threat, the RBA did mention ‘’cash rates could remain at current levels for some time”’.
AUD/NZD bearish bias
Meanwhile, on the weekly chart the downtrend is very much still intact but offers some room to go before meeting the descending resistance line from and unless there is a convincing breakout to the downside, a pull back towards that resistance could be something for the bulls to buy into. The price formation on the shorter term charts is offering a channel that could be tested either way and if it is broken to the upside, then that resistance line aforementioned could be targeted. Meanwhile, the charts are offering a bearish bias and the price is trading below the picot point currently.