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1 Oct 2013
AUD/NZD skyrockets on ‘neutral’ RBA minutes
AUD/NZD skyrockets on ‘neutral’ RBA minutes
FXstreet.com (Athens) – The AUD/NZD soared a bit earlier close to the area as of 1.1300 –gaining approximately 60 pips- after RBA left rates at the same level, but mostly on its neutral tone.
AUD/NZD touches almost the 1.1300, as traders caught “off –guard” on neutral RBA
The AUD/NZD was hovering around the area as of 1.1228 before the RBA minutes released, still well above the early opening trading in Asian’s session (1.1199). As soon as the RBA minutes were announced, the cross skyrocketed to 1.1295 area, while just a few minutes earlier touched a daily high (1.1298). To elaborate on, we do consider that traders caught off-guard on the RBA minutes, as hadn’t actually priced in a neutral RBA stance; therefore many stops triggered, leading the cross further upwards near the key-zone area of 0.9400. To elaborate on, the great majority of traders seemed to wait for more dovish announcement which might lead to a potential monetary easing; instead of that, RBA presented a very neutral statement, without finding any scope to ease and not worried much the recent rise in the “Aussie”, while also suggesting that “previous rate cuts supported spending and asset values, while the lower currency helped the country to rebalance.” Thus, we had a squeeze of short positions on the AUD, which drove the cross even higher.
Technical Outlook on AUD/USD
At the time of writing the AUD/NZD is trading at 1.1306, relatively close to its daily high as of 1.1308. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15-minutes timeframe chart. Daily pivot point support can be found at 1.1485, 1.1455, 1.1428, and resistance at 1.1550, 1.1579 and 1.1608, respectively.
FXstreet.com (Athens) – The AUD/NZD soared a bit earlier close to the area as of 1.1300 –gaining approximately 60 pips- after RBA left rates at the same level, but mostly on its neutral tone.
AUD/NZD touches almost the 1.1300, as traders caught “off –guard” on neutral RBA
The AUD/NZD was hovering around the area as of 1.1228 before the RBA minutes released, still well above the early opening trading in Asian’s session (1.1199). As soon as the RBA minutes were announced, the cross skyrocketed to 1.1295 area, while just a few minutes earlier touched a daily high (1.1298). To elaborate on, we do consider that traders caught off-guard on the RBA minutes, as hadn’t actually priced in a neutral RBA stance; therefore many stops triggered, leading the cross further upwards near the key-zone area of 0.9400. To elaborate on, the great majority of traders seemed to wait for more dovish announcement which might lead to a potential monetary easing; instead of that, RBA presented a very neutral statement, without finding any scope to ease and not worried much the recent rise in the “Aussie”, while also suggesting that “previous rate cuts supported spending and asset values, while the lower currency helped the country to rebalance.” Thus, we had a squeeze of short positions on the AUD, which drove the cross even higher.
Technical Outlook on AUD/USD
At the time of writing the AUD/NZD is trading at 1.1306, relatively close to its daily high as of 1.1308. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15-minutes timeframe chart. Daily pivot point support can be found at 1.1485, 1.1455, 1.1428, and resistance at 1.1550, 1.1579 and 1.1608, respectively.