AUD/NZD clocks fresh 22-month high above 1.09 after RBNZ


  • NZD drops across the board as RBNZ boosts the asset purchase program. 
  • The central bank says negative rates and foreign QE are an option. 
  • AUD/NZD jumps to the highest level since October 2018. 
The offered tone around the New Zealand dollar strengthened, pushing the AUD/NZD cross to fresh 22-month highs above 1.09 after the Reserve Bank of New Zealand (RBNZ) boosted the large scale asset purchase program (LSAP) by NZD 100 billion. 
 
The markets were expecting the central bank to boost its asset purchase program to NZD 75 to 90 billion. Hence, it's no surprise that Kiwi fell to fresh multi-month lows in a knee jerk reaction. 
 
And while the central bank kept the official cash rate (interest rate) unchanged at 0.25%, it left the doors open for a potential cut to negative territory in the future. Policymakers agreed that package of additional monetary instruments must remain in the active preparation, the official statement said, while adding that negative rates and purchases of foreign bonds remain an option. 
 
Looking forward, the RBNZ's outright dovish stance is likely to keep the NZD on the defensive. The AUD/NZD cross is trading at 1.881 at press time, representing a 0.23% gain on the day, having put in a high of 1.0920 immediately following the rate decision. That was the highest level since October 2018. 

Technical levels

AUD/NZD

Overview
Today last price 1.0861
Today Daily Change 0.0000
Today Daily Change % 0.00
Today daily open 1.0861
 
Trends
Daily SMA20 1.0751
Daily SMA50 1.0703
Daily SMA100 1.0638
Daily SMA200 1.0537
 
Levels
Previous Daily High 1.0897
Previous Daily Low 1.0807
Previous Weekly High 1.0866
Previous Weekly Low 1.0716
Previous Monthly High 1.0802
Previous Monthly Low 1.0559
Daily Fibonacci 38.2% 1.0862
Daily Fibonacci 61.8% 1.0841
Daily Pivot Point S1 1.0813
Daily Pivot Point S2 1.0765
Daily Pivot Point S3 1.0723
Daily Pivot Point R1 1.0903
Daily Pivot Point R2 1.0945
Daily Pivot Point R3 1.0993

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD trades at fresh September lows

Risk-aversion is the main theme this Monday, amid resurgent coronavirus cases in the Old Continent and the announcement of  new lockdowns. ECB’s Lagarde said the economic recovery in the EU is “very uncertain, uneven and incomplete.”

EUR/USD News

GBP/USD extends slump sub-1.2800

The Pound plunged on a dismal market mood, as PM Johnson acknowledged the kingdom is undergoing a second coronavirus wave. GBP/USD trades at one-week lows around 1.2800.

GBP/USD News

XAU/USD dives to sub-$1900 levels, six-week lows

Gold extended last week's rejection slide from a short-term descending trend-line resistance and tumbled to six-week lows during the early North American session.

Gold News

Bitcoin needs to defend critical support level at $10,600

Bitcoin was trading inside an ascending triangle pattern between September 3 and September 15, which is created when the price establishes higher lows and a horizontal trendline around the swing highs. 

Read more

WTI plummets to $39, down more than 4%

Crude oil prices closed the previous week sharply higher but erased a large portion of those gains on Monday. As of writing, the barrel of West Texas Intermediate was down 4.2%, the biggest daily percentage decline in nearly two weeks, at $39.15.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures