The AUDNZD pair should see volatility from a busy economic calendar in the coming week. This should help to define the next path for the Aussie and New Zealand dollars.
Tomorrow sees the release of the Reserve Bank of Australia’s meeting minutes from its recent interest rate decision. The RBA has been clear that 0.25% is a floor in rates that they want to keep so the market will gauge the appetite for more stimulus from RBA Governor Lowe.
Thursday will see a duel release with the release of New Zealand’s GDP figure for the second quarter. Analysts expect the year-on-year figure to produce a -13.3% print any deviation to the number will be a key driver for the Kiwi currency. The NZD has been under pressure as traders bet that negative interest rates will be coming in the first quarter of 2021. The GDP figure will go a long way to determine if this timeframe is correct.
A few hours later from the GDP will be the release of Aussie jobs numbers. This was a key mover of Philip Lowe’s strategy on monetary policy and the market is expecting to see a loss of 50k jobs with a slight increase in the unemployment rate to 7.7%. With the RBA minutes, the outlook for stimulus will become clear and the AUDNZD should see volatility this week
The AUDNZD pair is testing the uptrend line support and key high from November of last year and June of 2020. There could be support at last week’s lows but the technical pattern would open a potential move to 1.0600. A close above 1.0900 would signal further gains are possible.