28 May 2014
AUD/NZD dipping lower; daily sticks are sideways
FXStreet (Guatemala) - AUD/NZD is trading at 1.0811, up 0.01% on the day, having posted a daily high at 1.0822 and low at 1.0805.
AUD/NZD has dropped on the Fonterra news , but reverting back to the curve, Imre Speizer, strategist at Westpac Banking Corporation ABN explained that they have held a flattening bias for much of the past year with the NZ curve. “The primary rationale was that an RBNZ tightening cycle should flatten the curve significantly via the short end”, they said. “That has indeed panned out as expected, with the 2-10yr swap curve falling from 160bp in September 2013 to 78bp last week”. They expect to see it lower by year end, somewhere between zero and 50bp, because the RBNZ has much further to run. Meanwhile, daily RSI is in neutral territory at 50.79 and the pair is very much trading the sideways channel still.
AUD/NZD Levels
Current price is 1.0812, with resistance ahead at 1.0813 (Daily Open), 1.0822 (Hourly 20 EMA and (Daily High), 1.0823 (Daily Classic R1) and 1.0841 (Yesterday's High). Next support to the downside can be found at 1.0812 (Weekly High), 1.0810 (Daily Classic PP), 1.0807 (Hourly 200 SMA), 1.0805 (Daily Low) and 1.0803 (Hourly 100 SMA).
AUD/NZD has dropped on the Fonterra news , but reverting back to the curve, Imre Speizer, strategist at Westpac Banking Corporation ABN explained that they have held a flattening bias for much of the past year with the NZ curve. “The primary rationale was that an RBNZ tightening cycle should flatten the curve significantly via the short end”, they said. “That has indeed panned out as expected, with the 2-10yr swap curve falling from 160bp in September 2013 to 78bp last week”. They expect to see it lower by year end, somewhere between zero and 50bp, because the RBNZ has much further to run. Meanwhile, daily RSI is in neutral territory at 50.79 and the pair is very much trading the sideways channel still.
AUD/NZD Levels
Current price is 1.0812, with resistance ahead at 1.0813 (Daily Open), 1.0822 (Hourly 20 EMA and (Daily High), 1.0823 (Daily Classic R1) and 1.0841 (Yesterday's High). Next support to the downside can be found at 1.0812 (Weekly High), 1.0810 (Daily Classic PP), 1.0807 (Hourly 200 SMA), 1.0805 (Daily Low) and 1.0803 (Hourly 100 SMA).