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AUDNZD: How Far Can the Aussie Go Against the Kiwi?

AUDUSD Australian dollar

AUDNZD was 0.45% higher on the day as the Aussie currency continued to get a boost from the Reserve Bank meeting on Tuesday. The pair is over 100 pips higher than Monday’s low.

Yesterday’s RBA meeting saw the bank cutting interest rates by 0.15% as expected and also embarking on a A$100bn bond-buying program. The market had also expected the asset purchases at a level nearer A$140bn, so that maybe explains the move higher in the Aussie dollar, which was counterintuitive compared to other central bank reactions.

Another boost for the Australian economy has been the first virus-free days in five months, while the state of Victoria saw four days without a case. Traders are reacting to the stimulus by the RBA and seeing it as a timely move that could supercharge the country’s recovery.  

New Zealand saw the release of jobs data last night and the figures were very much in line with expectations, so the Kiwi has given up ground on the day.  Q-on-Q employment came in at -0.8% and this was a slowdown from Q2 but expected by the market. The country’s unemployment rate came in slightly lower at 8.3% compared to the analyst forecast of 8.4% so it wasn’t enough to see and real support in the NZD.

AUDNZD Technical Outlook

AUDNZD has rallied from the lows near 1.0600 to test the 1.0730 level which was support in late-September. The pair will need a close above this level on the day, or week, to see further gains with the ma at 1.0800 and resistance at 1.0900. A stop can go below today’s low but I would prefer to see the market close above the 1.07300 mark. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.  

AUDNZD Daily Chart