AUD/NZD: tests of the 55 DMA persist, upside bias

By FXStreet FXStreet (Guatemala) – AUD/NZD is currently trading at 1.0899 with a high of 1.0910 and a low of 1.0881.

AUD/NZD bulls are resting up at the 1.09 handle with dips supported in the trenches of 1.0890 looking to move over the top on the next catalyst to weigh on the bird while interest rate differentials support the upside bias moving towards the RBNZ meeting in December where markets are looking for further easing to stimulate the New Zealand economy.

There are the risks however in respect of the nation’s housing sector to the RBNZ while the value of the kiwi will likely be determined on the Feds actions, or non action in the same month while there is a risk that Yellen will decide to rein in the dollar bulls in the absence of accelerating price pressures in the US.

AUD/NZD levels

Technically, resistance is being tested here at the 28th July lows of 1.0895. AUD/NZD bulls target the 55 DMA at 1.0919 as first near term resistance while a recovery back above the 1.10 handle and through the October highs of 1.0983 would open up space back into the daily channel between late June’s rally’s highs of 1.1429 and current …read more

Source:: FX Street