AUD/NZD: Bulls looking for a coronavirus troubled RBNZ this week
- AUD/NZD bulls in control ahead of RBNZ this week.
- The coronavirus is keeping risk appetite at bay.
AUD/NZD has run into familiar resistance and awaits the Reserve Bank of New Zealand this week. At the time to wring, AUD/NZD is trading at 1.0426 between a range of 1.0403 and 1.0435.
The pair has clung onto positive territory with the Aussie dominating the FX space, one place behind the almighty US dollar. The cross is going to be a focus this week considering we have now heard just about all we can from the Reserve Bank of Australia, and now its the RBNZ's turn to see where there could be something to trade between the two central bank's outlooks.
The bulls will be looking for emphasis that the RBNZ views the coronavirus as a near term risk, but looking forward, expect there to be a bounce-back for the global economy when it is finally resolved, along the same lines as Phillip's Lowe's observation in last week's commentary on the matter.
For a full preview on the RBNZ, see here – RBNZ Preview: Coronavirus should limit upside potential for NZD/USD, although, the risks are to the downside for the bird considering the coronavirus and implication for the New Zealand economy which could exert further upside pressures on the cross.
"The RBA was positive about the medium-term outlook for the Australian economy in February’s SoMP, reiterating that only a sustained worsening in conditions would see further easin," analysts at ANZ Bank explained which could give the Aussie some near term support.
"In the near-term, GDP growth is expected to be lower than previously forecast, reflecting the impacts of the virus and the bushfires. Given these downside risks, even with two further cuts, we struggle to see the economy hitting 2¾% by the end of 2020."