Kiwi is highly affected by dairy prices while Loonie tags oil prices. With RBNZ and RBA paying 2.5% and 2% interest respectively, these are among high yield currencies.
RBNZ has rate statement coming this Thursday (1/28) and is expected to sound more dovish as the last meeting in Dec , Govenor Wheeler said further depreciation is appropriate. Furthermore, dairy prices have remain weak, with milk powder price have fallen more than than 5% since last meeting. Interest rate market, prices only 10% probability that RBNZ will cut rate this Thursday.
RBA has rate statement Tuesday next week (2/2), and is not expected to ease any further for now. Aussie should benefit from demand in Gold .
This pair has slightly above 200 pips weekly range and slightly below 100 daily range.