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7 Jan 2015
AUD/NZD: Kiwi making light work of yearly lows
FXStreet (Guatemala) - AUD/NZD is trading at 1.0410 having made a high at 1.0436 and a low at 1.0400, down 0.04% in yearly lows.
AUD/NZD has been trying to recover off the lows around the 1.04 level and yearly lows but is being met with supply ahead of the mid point of the handle at 1.0435. The cross is currently offered through 1.0420 and headed back towards the psychological figure.
The Kiwi has taken on the greenback and defended the 0.78 level which demand hen instigated the supply in the cross, triggering stops blow the long period of consolidation over the Christmas break. This sets the pair up at the 1.04 handle’s multi year lows. From here, should the handle give out, we are into extreme oversold conditions while we dabble with levels last traded in 2005. Fundamentals make the bird an easy target for the bulls currently while the outlook for the divergence between the two Central Banks through 2015 remains compelling.
AUD/NZD has been trying to recover off the lows around the 1.04 level and yearly lows but is being met with supply ahead of the mid point of the handle at 1.0435. The cross is currently offered through 1.0420 and headed back towards the psychological figure.
The Kiwi has taken on the greenback and defended the 0.78 level which demand hen instigated the supply in the cross, triggering stops blow the long period of consolidation over the Christmas break. This sets the pair up at the 1.04 handle’s multi year lows. From here, should the handle give out, we are into extreme oversold conditions while we dabble with levels last traded in 2005. Fundamentals make the bird an easy target for the bulls currently while the outlook for the divergence between the two Central Banks through 2015 remains compelling.