The Aussie and Kiwi dollars are outperforming so far today, showing respective gains of 0.6% and 0.8% against the USD. (See our Traders Board for details) Fitch’s AA rating for long-term New Zealand sovereign debt helped the Kiwi dollar higher, while gains in commodity prices have also been supportive for both the antipodean currencies. Expectations for a 25 bp rate cut by the RBNZ at its review tomorrow have been fully baked in. Yield differentials are also strongly in their favour relative to core developed-world benchmarks, which, in the case of Australia was given sharpened relevance by last week’s RBA Statement on Monday Policy which noted that CPI was expected to pick up “gradually to around 2% by the end of the forecast period,” signalling that the central bank may be done with easing following quarter-point cuts last week and in May.
Current intraday percentage change of currencies against other major currencies since the last daily close at 23:59:59 server time.
Technically, the AUDUSD remains in a strong up trend since it broke and held the 20 DMA (August 2), which offers a support area 0.7620-0.7590. The near two week rise from the 23.6 Fibonacci level and psychological 0.7450 level could lead to a re trace to 0.7690 before Target 1 at 0.7840 and Target 2 at 0.8000.
Chief Market Analyst
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About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
“My mission is to help you to become a confident and successful trader”
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