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Quick thoughts on the NZD/AUD pair

Written by Sam Coxhead on June 23rd, 2011.      0 comments

2:45 PM (NZT) The NZD/AUD  remains in the range that it has been for almost a month now. The focus this week was the Reserve Bank of Australia Monetary Policy Meeting minutes that were released on Tuesday. The minutes show that there is little chance of a hike in the cash rate in the coming months from the RBA. Whilst the response to this has not been huge, the bias has been for the NZD to grindingly outperform. Looking forward the economic data releases are going to be very important for direction with regards to the AUD.
It is likely that we will see the rate move around in the .7550/.7800 range for the time being. Next week sees an absence of leading Australian data due for release, so the focus will be NZ based for the lead and Thursday will be the key. Building Consent numbers are due, along with the important NBNZ Business Confidence numbers. The Business Confidence numbers will be the most closely watched to see if the bounce from the lows following the February earthquake can be maintained.
A sustained break of the key resistance at the .7810 level opens up the way for another lunge to the topside at .8130 which is getting close to more historically average levels.
Current levels around the .7710 level still represent good value buying of NZD with AUD.