24 Jul 2015
AUD/NZD has worst week in years despite RBNZ rate cut
FXStreet (Córdoba) - The aussie is about to post the worst weekly results in at least three years against the kiwi. AUD/NZD dropped in five out of the last six days but managed to hold above July lows.
AUD/NZD bearish correction
The pair moved to the downside since the beginning of the week and extended losses after the Reserve Bank of New Zealand (RBNZ) lowered the Official Cash Rate by 25 basis points and signaled that more stimulus is likely. Many investors were expecting a more aggressive cut or tone.
The kiwi gained momentum across the board after the RBNZ while the aussie extend losses amid a decline in commodity prices. On Friday, a weak PMI reading from China, pushed the pair back below 1.110. During the American session it bottomed at 1.1042.
Despite falling more than 250 pips over the last five days the pair found support above July lows that lie at 1.1015. At the beginning of the month hit at 1.1426 the highest level since November 2013, but it failed to make a weekly close above 1.1300 and lost strength.
AUD/NZD bearish correction
The pair moved to the downside since the beginning of the week and extended losses after the Reserve Bank of New Zealand (RBNZ) lowered the Official Cash Rate by 25 basis points and signaled that more stimulus is likely. Many investors were expecting a more aggressive cut or tone.
The kiwi gained momentum across the board after the RBNZ while the aussie extend losses amid a decline in commodity prices. On Friday, a weak PMI reading from China, pushed the pair back below 1.110. During the American session it bottomed at 1.1042.
Despite falling more than 250 pips over the last five days the pair found support above July lows that lie at 1.1015. At the beginning of the month hit at 1.1426 the highest level since November 2013, but it failed to make a weekly close above 1.1300 and lost strength.