AUD/NZD: upside potential still on track

By FXStreet FXStreet (Guatemala) – AUD/NZD is currently trading at 1.0838 with a high of 1.0845 and a low of 1.0817.

AUD/NZD has started to consolidate the strong uptrend at the midway point of the 1.08 handle having garnered demand on interest rate differentials and the divergences between the two Central Banks while the RBNZ is expected to cut interest rates in the December meeting while the RBA have signalled that they are on hold for the time being, but growth rate assumptions have been cut slightly, so if policy were to change it would be easing rather that tightening.

AUD/NZD levels

Technically, the cross is on track for targeting 1.1000 but momentum has slowed. The ascending 200 SMA on the hourly chart has been left for dust at 1.0655 today and the 1.0800 late October recovery high has also been breached. However, RSI (14) still has room to go on the upside and the price is better bid above the pivot of 1.0820 and 200 / 20 DMA’s supporting a continuation of the bullish recovery.
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Source:: FX Street