• AUD/NZD is firmer following Tuesday's GDP report. 
  • Central bank divergence between RBNZ / RBA keeps a lid on recovery. 

AUD/NZD is currently trading at 1.0426 and between a low of 1.0410 and 1.0429.

Both nations are experiencing a rise in covid cases but the Aussie is lagging the kiwi due to central bank divergences.

While there is a rise in cases in New Zealand, it is not something that analysts believe will derail OCR hikes by the Reserve Bank of New Zealand. 

in contrast, the Reserve Bank of Australia is expected to announce a delay in the planned reduction of its weekly bond purchases next week.

''An alternative choice is to continue with taper, but delay the next review until February. We think a simple delay is much easier to communicate than this alternative,'' analysts at ANZ Bank explained. 

''We would emphasise that this decision is likely to be a close call.''

Meanwhile, last month, Melbourne marked 200 days of lockdown since the pandemic began and is in the midst of its sixth lockdown.

New local cases jumped to 120 in Victoria from 76 a day earlier. Of the new cases, 100 have spent time in the community while infectious.

Victorians have also been subjected to an extended lockdown due to a Delta outbreak and Premier Daniel Andrews yesterday conceded Melbourne was likely to be subjected to "very significant restrictions" for several weeks.

The delta risks have dampened yesterday's Gross Domestic Product beat for they will play into the third-quarter numbers. 

Meanwhile, the Aussie may enjoy some relief in the current weakness in the greenback. 

On Wednesday, the US dollar dropped after the ADP National Employment Report showed private payrolls rose by 374,000 in August, up from 326,000 in July but well short of the 613,000 forecasts. 

The US dollar, as measured against a basket of currencies in the DXY index ended around 0.13% lower and near to 92.500.

The index had fallen to as low as 92.378 on the day, just points above the structural support of 92.344. 

In Asia, DXY is sat at 92.50 and waits for the next catalyst in Friday's Nonfarm Payrolls and US Consumer Price Index ahead of this month's Federal Reserve meeting.

Weekly chart

Meanwhile, the weekly outlook is compelling.

If this week manages to close as is, then the hanging man could equate to a subsequent bullish structure over time, putting in a floor in this current downtrend from prior weekly support from April.

AUD/NZD

Overview
Today last price 1.0427
Today Daily Change 0.0007
Today Daily Change % 0.07
Today daily open 1.042
 
Trends
Daily SMA20 1.0454
Daily SMA50 1.0565
Daily SMA100 1.0659
Daily SMA200 1.0691
 
Levels
Previous Daily High 1.0438
Previous Daily Low 1.0373
Previous Weekly High 1.0534
Previous Weekly Low 1.0391
Previous Monthly High 1.0592
Previous Monthly Low 1.0338
Daily Fibonacci 38.2% 1.0413
Daily Fibonacci 61.8% 1.0398
Daily Pivot Point S1 1.0382
Daily Pivot Point S2 1.0345
Daily Pivot Point S3 1.0317
Daily Pivot Point R1 1.0448
Daily Pivot Point R2 1.0475
Daily Pivot Point R3 1.0513

 

 

 

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory. 

EUR/USD News

GBP/USD struggles to hold above 1.2300

GBP/USD struggles to hold above 1.2300

GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data. 

GBP/USD News

Gold stays below $1,830 as US yields edge higher

Gold stays below $1,830 as US yields edge higher

Gold continues to fluctuate below $1,830 on Friday and looks to close the second straight week in negative territory. Fueled by the risk-positive market environment, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, limiting XAU/USD's upside.

Gold News

Why Cardano could surprise over the weekend

Why Cardano could surprise over the weekend

ADA  set to close out the week with a gain on the workday trading week and over the weekend? Central banks signaled that the rate hike cycle is ending, meaning less stress and tight conditions for trading, opening up room for some upside potential with Cardano set to pop above $0.55 and test a significant cap.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures