Aussie vs. Kiwi review

Fundamental change -

Reserve bank of New Zealand (RBNZ) Asst. Governor Mc Dermott raised the possibility of a rate cut over the next few meetings.

Next rate decision is due on Aril 29, Wednesday next week.

• Say no more, bears got the message. Couldn't have been better placed either.
• Bears cheered at falling trend line at 0.772 against dollar. Now trading at 0.755.

These comments made commodity pairs look very attractive

• Aussie posted 200 points comeback from parity.

Technically speaking, bulls' comeback from parity is what making this pair so interesting.

Aussie and Kiwi, by many counts share similar fundamental challenge and both the currency belong to the common group of Commodity pairs. These makes the pair (AUD/NZD) so attractive.

Aussie is at a very crucial point against Kiwi.

Price has closed close to monthly closing level, which stands at 1.0228. Price as of now is trading close to 1.028.

Some pull back is surely possible at this crucial area, however pair remains a very attractive buy at sell offs. Risk reward ratio is very attractive, keeping parity area as stop.