Wednesday, January 27, 2016

AUD/NZD jumps after RBNZ statement

FXStreet (Córdoba) - The kiwi plummeted across the board following the decision of the Reserve Bank of New Zealand[1] (RBNZ). AUD/NZD[2] jumped more than 70 pips, rising from 1.0830 to 1.0914 and reached the highest level since December 9. The pair was trading near the highs, holding a bullish tone as the NZD tumbled across the board.

So far, AUD/NZD is up by 150 pips from the level it had 24 hours ago, boosted during the Asian session by inflation numbers from Australia[3] and recently by the RBNZ statement.

The central bank left interest rate unchanged but weakened the kiwi by signaling that more easing may be required. "Monetary policy will continue to be accommodative. Some further policy easing may be required over the coming year to ensure that future average inflation settles near the middle of the target range", said the RBNZ.

AUD/NZD technical levels

To the upside, resistance levels might be located at 1.0915 (daily high), 1.0960 (Dec 07 high) and 1.1000 (psychological). On the opposite direction, support might be located at 1.0870 (Asian session high), 1.0805 (intra-day low) and 1.0750 (Jan 26 & 27 low).

References

  1. ^ Reserve Bank of New Zealand (www.fxstreet.com)
  2. ^ AUD/NZD (www.fxstreet.com)
  3. ^ inflation numbers from Australia (www.fxstreet.com)

AUD/NZD jumps after RBNZ statement Rating: 4.5 Posted by: Unknown

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