AUD/NZD sits mid 1.06 range in early Asia as NZ returns


  • AUD/NZD trades in the mid 1.06 area ahead of key data this week.
  • COVID cases offshore could play in the hands of the antipodean bulls.

Ahead of New Zealand's Trade Balance, the Kiwi has consolidated at elevated levels following holiday trading conditions yesterday.

The Aussie consolidated between a 50 pip range in the lower half of the 0.71 area.

AUD/NZD is in focus as markets get set for the Aussie Consumer Price Index and awaits to see what the central banks will do next. 

At the time of writing, AUD/NZD is trading at 1.0656. 

It was a risk-off session overnight in European and US markets pertaining to the surge in the latest coronavirus new cases. 

Meanwhile, the antipodeans have so far managed to see off the second round of the virus which could potentially work in the domestic currency's favour.  

Antipodeans off the Covid hook

According to the Worldometer global database, which sources data from national ministries of health and the World Health Organisation, only six nations have definitively emerged from their second wave: Australia, South Korea, Japan, Hong Kong, Vietnam and Singapore. 

The series of clusters that arose in Auckland in mid-August never really evolved into a clear second wave, and ultimately, Victoria has performed extremely well by international standards. 

''Going forward, the Kiwi’s Achilles heels will be negative interest rates (with fierce debate ongoing as to when that will be – we still expect it in April) and risk appetite,'' analysts at ANZ Bank argued.

''But until either of those two things happen, the path of least resistance seems to be higher.''

As for the cross, the analysts argued, ''at the elevated end of trading ranges, and a technical break even  isn’t far off, or unimaginable, with the RBA on track to ease next.

Australian CPI data tomorrow is the next key risk event and could be like NZ’s: strong data will likely be ignored/looked through; weak data will be viewed as supporting the case for early/more aggressive easing.''

AUD/NZD levels

 

Overview
Today last price 1.0663
Today Daily Change -0.0007
Today Daily Change % -0.07
Today daily open 1.067
 
Trends
Daily SMA20 1.0777
Daily SMA50 1.0843
Daily SMA100 1.0779
Daily SMA200 1.0629
 
Levels
Previous Daily High 1.0691
Previous Daily Low 1.0652
Previous Weekly High 1.0734
Previous Weekly Low 1.0643
Previous Monthly High 1.0966
Previous Monthly Low 1.0712
Daily Fibonacci 38.2% 1.0676
Daily Fibonacci 61.8% 1.0667
Daily Pivot Point S1 1.0651
Daily Pivot Point S2 1.0632
Daily Pivot Point S3 1.0613
Daily Pivot Point R1 1.069
Daily Pivot Point R2 1.0709
Daily Pivot Point R3 1.0728

 

 

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