23 Jul 2014
AUD/NZD near 1.0900 ahead of RBNZ
FXStreet (Córdoba) - The AUD/NZD awaits the RBNZ decision trading steady around 1.0880, near 1.0900 as the Aussie remains strong across the board. The pair extended gains during the European session and climbed to 1.0885. It traded in a range between the highs and 1.0870 on American hours.
It was the second gain in a row for the Aussie against the Kiwi and the seventh out of the last eight trading days. The momentum is clearly bullish.
AUD/NZD and the RBNZ
In a few minutes, at 21:00 GMT the RBNZ will announced its decision on monetary policy. Price could continue to rally if the central bank does not raise interest rates as expected or if the statement points to a pause in the hiking cycle. On the other side the kiwi could rally if the rate hike is larger than expected (more than 25 bps) or if the statement mentions that it will continue with the current policy.
A dovish statement by the RBNZ could pushed the AUD/NZD back above 1.0900 to fresh 1-month highs while a hawkish position could trigger a bearish correction.
It was the second gain in a row for the Aussie against the Kiwi and the seventh out of the last eight trading days. The momentum is clearly bullish.
AUD/NZD and the RBNZ
In a few minutes, at 21:00 GMT the RBNZ will announced its decision on monetary policy. Price could continue to rally if the central bank does not raise interest rates as expected or if the statement points to a pause in the hiking cycle. On the other side the kiwi could rally if the rate hike is larger than expected (more than 25 bps) or if the statement mentions that it will continue with the current policy.
A dovish statement by the RBNZ could pushed the AUD/NZD back above 1.0900 to fresh 1-month highs while a hawkish position could trigger a bearish correction.