AUD/NZD is currently trading at 1.0763 printing a high of 1.0797 and a low of 1.0743.
It is a big week for the antipodean cross. The data not only brings us the GDT price index for the kiwi, but the RBA minutes and unemployment data for the Aussie are on the cards. AUD/NZD has been in a reversal of the start of May’s 1.0935 sell-off, rallying sharply from just below the 1.06 handle. The outlook for today is should the cross sustain gains above 1.0800, analysts at Westpac said this will only add further confidence to the bullish case.
AUD/NZD 1-3 month:
The analysts longer term outlook is also bullish and higher to 1.10. “The cross remains well below fair value estimates implied by interest rates, commodity prices and risk sentiment, although it is closing the gap (6 Mar).”
As the analysts explained, 1.0800 is a key target area that has multiple test in recent sessions that have so far failed. 1.0780 is the first hurdle though where the 200 ema meets the 10 sma o the four-hour sticks. A break of these levels onto the 1.08 handle opens the said early May highs at 1.0935. To the downside, 1.0720, 1.0640 and 1.06 the figure are the key levels.