AUD/NZD: a little recovery action onto 1.09 handle

By FXStreet FXStreet (Guatemala) – AUD/NZD bulls are getting behind the consensus of a rate cut from the RBNZ this week and is about the only pair that has giving us any action in an overly quiet Asian session so far ahead of Tokyo. The price has drifted up from the region of 1.0877 and is tackling the 1.09 handle at the time of writing having scored a recent high of 1.0912 so far.

However, analysts at Brown Brothers Harriman, explained that last minute doubts that the Reserve Bank of New Zealand will cut rates helped spur a rally that lifted the New Zealand dollar to near $0.6800 before the weekend. “Technical indicators suggest potential for additional gain. Above $0.6800, resistance near $0.6840 may slow the pace, but a test on the October high’s (~$0.6865 and $0.6900) seems likely. This analysis is consistent with the Australian dollar losing ground against the Kiwi. A break of NZD1.0865 could spur a 1-2% decline.”

Apart from the RBNZ, the key data for the cross this week will come in the Aussie unemployment rate that is expected to come at 6.0% vs 5.9% previous. The October employment change of 58.6k …read more

Source:: FX Street