AUD/NZD Hammered on RBNZ’s Status-Quo, Lowest Since May 2015

AUD/NZD Hammered on RBNZ’s Status-Quo, Lowest Since May 2015

9 June 2016, 07:49
Roberto Jacobs
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AUD/NZD Hammered on RBNZ’s Status-Quo, Lowest Since May 2015

The AUD/NZD battering extends into the early European trading, with the New Zealand dollar smashing its OZ counterpart in response to rates on-hold RBNZ policy decision announced earlier on the day.

AUD/NZD extends previous sell-off

The AUD/NZD pair now drops -0.88% to 1.0462, recovering slightly from fresh thirteen-month lows struck at 1.0442 in the last hour. The bears remain relentless as the RBNZ’s steady OCR-decision coupled with its optimistic remarks on the NZ economy as well as inflation outlook, fuelled renewed strength in the NZD.

Adding to the losses in the AUD/NZD cross, the Australian dollar trades with size-able losses against its American rival, correcting a part of yesterday oil rally-back rise. While sluggish Chinese inflation data also collaborated to the downbeat sentiment surrounding the cross.

Focus now remains on the US jobless claims and consumer sentiment due today and tomorrow, ahead of a slew of Chinese macro data lined up for release this weekend.

AUD/NZD Technical Levels

To the upside, the next resistance is located at 1.0581/82 (daily pivot/ 5-DMA) and above which it could extend gains to at 1.0650/58 (20-DMA).To the downside immediate support might be located 1.0440 (multi-month low) below that at 1.0400 (round figure).


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