- The kiwi has been slipping lower in recent days and remains vulnerable ahead of RBNZ.
- Analysts foresee a dovish guidance on the cards. RBNZ expected to leave the OCR at 1.75%.
- The RBNZ will probably reiterate that monetary policy is on hold for the foreseeable future.
- AUD/NZD halted downside, bounced off 20-DMA. Price is holding break above 100-DMA and daily cloud.
- Technical indicators on weekly charts are bullish, RSI strong above 50, Stochs are biased higher and MACD is on verge of bullish crossover.
- We see scope for test of trendline resistance at 1.0840, bullish invalidation seen on decisive break below 200-DMA at 1.0611.
- Focus now on RBA quarterly statement (Fri) which will provide updates on key economic indicators and provide further direction.
Support levels - 0.1663 (100-DMA), 1.0655 (20-DMA), 1.0618 (38.2% Fibo 1.10188 to 1.03706 fall)
Resistance levels - 1.0771 (61.8% Fib retrace of 1.1018 to 1.0370 fall), 1.08, 1.0840 (trendline)
Call update: We stick to our long call (http://www.econotimes.com/FxWirePro-AUD-NZD-breaks-100-DMA-at-10671-eyes-trendline-at-10830-stay-long-833838).
Recommendation: Hold for targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 84.8706 (Slightly bullish), while Hourly NZD Spot Index was at 32.7097 (Neutral) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
