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1 Oct 2013
AUD/NZD rallying sharply after test of 1.1213 support and non-dovish RBA
FXstreet.com (Barcelona) - Traders are taking the AUD/NZD higher early Tuesday following a successful test of the 9/21 – 9/22 support at 1.1213 and in response to the RBA’s rate decision.
AUD/NZD traders likely to hold the current upside momentum for now
The AUD/NZD is rallying sharply early Tuesday after the Reserve Bank of Australia left rates unchanged and remained fairly neutral with the language in their policy statement. Apparently, traders were expecting a very dovish commentary out of the RBA to accompany their rate decision. When it didn’t come, those shorting the AUD/NZD were forced to cover their positions in a hurry.
Shy of any unexpected news Tuesday, the AUD/NZD is likely to continue its upside momentum until technical resistance comes into play or until more Aussie or New Zealand data points are released (Wednesday morning).
Technical outlook for AUD/NZD
As noted above, AUD/NZD has support at 1.1213. The projected key resistance will be the 1.1397 level – the 38.2% retrace of the September decline.
AUD/NZD traders likely to hold the current upside momentum for now
The AUD/NZD is rallying sharply early Tuesday after the Reserve Bank of Australia left rates unchanged and remained fairly neutral with the language in their policy statement. Apparently, traders were expecting a very dovish commentary out of the RBA to accompany their rate decision. When it didn’t come, those shorting the AUD/NZD were forced to cover their positions in a hurry.
Shy of any unexpected news Tuesday, the AUD/NZD is likely to continue its upside momentum until technical resistance comes into play or until more Aussie or New Zealand data points are released (Wednesday morning).
Technical outlook for AUD/NZD
As noted above, AUD/NZD has support at 1.1213. The projected key resistance will be the 1.1397 level – the 38.2% retrace of the September decline.