AUD/NZD recovered back above the 107 handle despite NZ CPI beat


  • AUD/NZD falls to fresh lows below the 1.07 handle on NZ CPI beat.
  • Market still pricing for RBNZ for a 25bp of easing on 13 November.

AUD/NZD made a two-week high at 1.0781 before retreating to 1.0725 ahead of the New Zealand Consumer Price Index for which sent the pair even lower to 1.0682. First of all, the Reserve Bank of Australia's October minutes left the door open to further easing without providing guidance on when the cash rate might be cut again.

As analysts at Westpac pointed out, "the minutes also mentioned arguments against cutting rates but obviously opted to act anyway. AUD/USD traded quietly, orbiting 0.6775 for no net change." Markets are pricing 10bp of easing at the 5 Nov RBA meeting, according to analysts at Westpac. 

New Zealand Q3 CPI rose above the market consensus

Then, getting stuck into the Kiwi's fundamentals, the first data event came with the GDT dairy auction which showed prices rising 0.5% overall. "Westpac revised up its forecast for Fonterra’s farmgate milk price for this season, from NZD6.50 to NZD6.80 per kilo of milk solids," the analysts explained.

As for New Zealand Q3 CPI, this rose above the market consensus of 0.6% and 1.4% to 0.7% and 1.5% on QoQ and YoY basis respectively. While the data was positive for the bird, overall, it does little to steer the RBNZ away from a dovish bias - Market pricing for RBNZ is for 25bp of easing on 13 November.

AUD/NZD levels

AUD/NZD

Overview
Today last price 1.0722
Today Daily Change -0.0032
Today Daily Change % -0.30
Today daily open 1.0754
 
Trends
Daily SMA20 1.074
Daily SMA50 1.0659
Daily SMA100 1.0574
Daily SMA200 1.054
 
Levels
Previous Daily High 1.0766
Previous Daily Low 1.0715
Previous Weekly High 1.0736
Previous Weekly Low 1.0643
Previous Monthly High 1.0852
Previous Monthly Low 1.063
Daily Fibonacci 38.2% 1.0746
Daily Fibonacci 61.8% 1.0734
Daily Pivot Point S1 1.0724
Daily Pivot Point S2 1.0694
Daily Pivot Point S3 1.0673
Daily Pivot Point R1 1.0775
Daily Pivot Point R2 1.0796
Daily Pivot Point R3 1.0826

 

 

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