AUDNZD pair catches a bid as it is up on dovish RBNZ. The 8 February AUDNZD Technical Outlook also reveals that downside risks are still heavily present.
8 February, GKFX – AUD/NZD found some buyers during Asia and is currently trading near the 1.0860 handle in early Tokyo trading.
AUD/NZD got a lift along with other NZD pairs after the RBNZ’s Assistant Governor Jon McDermott gave a mildly dovish interpretation of the RBNZ’s stance on the New Zealand economy, voicing a willingness to continue to ease rates while other central banks around the world are preparing to raise theirs, with the RBNZ having no intention of even considering lifting interest rates until at least mid-2019.
RBA policy statement tomorrow
It’s not too late for the AUD to catch its own bearish sailwind though, as the RBA’s Governor Philip Lowe will be giving a speech on Friday at the Australian A50 Economic Forum, starting around 09:00 GMT. Dovish sentiments from the central bank’s head could send the AUD drifting ahead of the RBA’s full-on Monetary Policy Statement, on Friday at 00:30.
8 February AUDNZD Technical Outlook
The pair is being its usual volatile self, with swing support/resistance at 1.0807 and 1.0878, respectively. Hourly charts show the pair starting to grind its way back up into last week’s bearish run, and the 1.0877 level could prove to be a tricky spot for buyers. Daily charts show heavy pressure for any bull runs: price is currently crossing over the 200-day SMA and will need a decided push to close back over the key indicator.
Today’s pivot points:
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