AUD/USD clocks one-week highs above 0.7120


  • The AUD is likely tracking the sharp gains in the NZD/USD pair. 
  • The Aussie-US bond yield differential, however, favors downside in the AUD. 

The AUD/USD pair jumped to seven-day highs above 0.7120 earlier today, possibly tracking the sharp gains in the NZD. 

The Kiwi dollar jumped 100 pips after the Reserve Bank of New Zealand (RBNZ) kept rates unchanged and pledged to keep rates at that level through 2019 and 2020. Further, the central bank said that the next move in rates could be up or down. 

The RBNZ was expected to join the dovish chorus of other central banks, especially, the RBA, which put the rate cuts back on the table last week. 

As of writing, AUD/USD is trading at 0.7108, representing a 0.30 percent gain on the day. 

The bid tone may weaken if the NZD/USD trims gains. Further, the yield differentials indicate the path of least resistance for the Aussie is to the downside. Notably, the spread between the Aussie and US 10-year government bond yields remains depressed at multi-decade lows near -0.55 basis points. 

AUD/USD pivot points

    1. R3 0.7167
    2. R2 0.7135
    3. R1 0.7117
  1. PP 0.7085
    1. S1 0.7067
    2. S2 0.7035
    3. S3 0.7017

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Buyers keep lurking around 13-day old support-line

Having bounced off 13-day old support-line, EUR/USD takes the bids to 1.1085 during early Tuesday. 23.6% Fibonacci retracement and 4H 100MA seem near-term key resistances.

EUR/USD News

GBP/USD: On the back foot around 1.2130 amid Brexit pessimism

GBP/USD clings to 10-day EMA after fresh signs of no-deal Brexit. The UK PM writes a letter to the EU showing alternative arrangements to Irish backstop ahead of Germany/France visit.

GBP/USD News

USD/JPY: Bulls in control with eye on the 107 handle

USD/JPY holds in the newly acquired 106 territories, boosted again overnight in a risk-on environment where US stocks moved sharply higher. Technical indicators in the mentioned time-frame remain within positive levels.

USD/JPY News

Gold holds stable below $1500 amid few fresh catalysts

Gold awaits fresh clues to extend the latest declines below 10-DMA. With the lack of fresh directives, Gold remains below $1,500 during the Asian session. Gold awaits fresh clues to extend the latest declines below 10-DMA.

Gold News

Bullish levels to watch after Binance announces Venus vs. Facebook's Libra

Cryptocurrencies have been advancing once again, with Bitcoin topping $10,500, Ethereum clawing its way back above $200, and Ripple extending its gains.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •