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AUD/NZD caught between the lines on 1.10 handle

FXStreet (Guatemala) - AUD/NZD is trading at 1.1019, down -0.03% on the day, having posted a daily high at 1.1032 and low at 1.1011.

AUD/NZD remains in a steady containment 10 pips around the 1.1020 level of the handle with the releases of the RBA’s minutes which gave us an overall picture that the bank is content with the way the economy is moving forward and as expected in relation to it’s monetary policy and no need to act currently.

Next up, we will have the Chinese slew of data that is coming up within the hour and anything negative there could weigh on the AUD and NZD. Retails sales is the less likely contender for action, but the GDP could be if a significant miss from expectations are revealed considering the amount of stimulus the PBoC has put into the economy of China of late. Meanwhile, Sean Callow, analyst at Westpac Banking Corporation ABN explained, “IP is the monthly release most worth watching, after printing a long way below consensus in Aug, at just 6.9% y/y, its weakest growth pace since Dec 2008. Partial recovery to 7.5% y/y is expected”. Meanwhile, for the bird in particular this week, the NZ CPI is on the horizon for and the trade balance.

AUD/NZD noteworthy levels

Current price is 1.1021, with resistance ahead at 1.1024 (Daily Open), 1.1027 (Hourly 20 EMA), 1.1032 (Daily High), 1.1033 (Daily Classic PP) and 1.1049 (Hourly 100 SMA). Next support to the downside can be found at 1.1016 (Yesterday's Low), 1.1011 (Daily Low), 1.1007 (Weekly Low), 1.1007 (Daily Classic S1) and 1.0990 (Daily Classic S2).

RBA minutes: Low wage growth to maintain inflation target

The RBA minutes revealed that the Board decided to leave the cash rate unchanged at 2.5 per cent. While they sighted growth in the global economy was continuing at a moderate pace and the AUD was depreciating somewhat related to a broad based appreciation in the greenback.
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