- AUD/NZD has rebounded firmly around the critical support of 1.0900.
- The RBA will elevate its interest rates by 50 bps to 1.85%.
- The NZ economy is likely to report upbeat employment data.
The AUD/NZD pair has rebounded sharply after slipping to near the critical support of 1.0900 in the Asian session. The asset has picked significant bids and a responsive buying action is in the making. Usually, a responsive buying action indicates heavy longs creation by the market participants when they found the asset a value bet.
The cross is fading the downside momentum as investors are expecting hawkish commentary from the Reserve Bank of Australia (RBA). RBA Governor Philip Lowe is expected to elevate its Official Cash Rate (OCR) consecutively for a third time by 50 basis points (bps). Price pressures are scaling higher in the Australian economy as the inflation rate has reached to 6.1% second quarter of CY2022. The inflation rate sees no exhaustion in its upside momentum yet as oil and food products prices are still volatile and are showing promising upside going ahead.
In today’s session, the release of the Caixin Manufacturing PMI data holds significant importance. The economic data is seen slightly lower at 51.5 from the prior release of 51.7. It is worth noting that Australia is a leading trading partner of China and a slump in Chinese manufacturing activities will affect the antipodean.
On the NZ front, kiwi bulls are awaiting the release of the employment data, which is due on Tuesday. The Unemployment Rate is likely to drop to 3.1% from the prior release of 3.2%. Apart from that the Employment Change may increase to 0.4% from the prior increase of 0.1%.
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.
Recommended content
Editors’ Picks
EUR/USD retreats to 1.0750 area as USD recovers
EUR/USD stays under modest bearish pressure and trades slightly below 1.0750 in the European session on Wednesday. Hawkish comments from Fed officials help the US Dollar stay resilient and don't allow the pair to stage a rebound.
GBP/USD drops below 1.2500 ahead of Thursday's BoE event
GBP/USD stays on the back foot and trades in negative territory below 1.2500 after losing nearly 0.5% on Tuesday. The renewed US Dollar strength on hawkish Fed comments weighs on the pair as market focus shifts to the BoE's policy announcements on Thursday.
Gold stays near $2,310 as US yields edge higher
Following a quiet Asian session, Gold retreated slightly to the $2,310 area. Hawkish tone of Fed policymakers help the US Treasury bond yields edge higher and make it difficult for XAU/USD to gather bullish momentum.
SEC vs. Ripple lawsuit sees redacted filing go public, XRP dips to $0.51
Ripple (XRP) dipped to $0.51 low on Wednesday, erasing its gains from earlier this week. The Securities and Exchange Commission (SEC) filing is now public, in its redacted version.
Softer growth, cooler inflation and rate cuts remain on the horizon
Economic growth in the US appears to be in solid shape. Although real GDP growth came in well below consensus expectations, the headline miss was mostly the result of larger-than-anticipated drags from trade and inventories.