AUD/NZD pushes above 1.0550, eyes last week’s highs ahead of key Aus/NZ data releases
- AUD/NZD pushed back above 1.0550 on Monday to challenge last week’s highs on Monday.
- External central bank events will dictate FX action this week, but Australia and New Zealand data will be of note.
AUD/NZD pushed back towards last week’s highs above 1.0550 on Monday, up about 0.1% on the day, as the Aussie dollar tentatively continued its run of outperformance versus its kiwi counterpart. The pair has rallied about 2.0% from lows earlier in the month close to 1.0350 and in doing so crossed back above both its 21 and 50-day moving averages which both currently reside close to the 1.0450 mark. To the upside lays the 200DMA almost bang on the 1.0600 level, which is also roughly in line with the October highs, while, to the downside, the 1.0500 area is a key zone of support.
The main theme in FX markets this week is central bank meetings, though neither the RBA or RBNZ are setting policy. But that doesn’t mean the pair can’t still derive some external tailwinds; one strategist suggested that if the Fed’s dot-plot this week is more hawkish than expected, then hawkish RBA bets could be boosted in tandem with more hawkish Fed bets. This could provide AUD/NZD with tailwinds.
But there will also be plenty of domestic Australia/New Zealand data for FX markets to sink their teeth into, as well as some central bank speak. RBNZ Governor Adrian Orr orates on Tuesday ahead of the release of NZ Q3 Current Account numbers and the Australia December Westpac Consumer Sentiment survey. Then, during Thursday’s Asia Pacific session, NZ Q3 GDP numbers are out, ahead of a speech from RBA Governor Philip Lowe and the release of the Australian November Labour Market report. On Friday, ANZ Business Confidence data is scheduled for release.
Author
Joel Frank
Independent Analyst
Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset
