AUDNZD is benefiting from the surprise move by the RBNZ two weeks ago to cut interest rates by 0.5%. The Kiwi, a key carry-trade currency due to its traditionally higher interest rates, fell as the news broke and has continue to decline in the last two weeks. The pair breached the key 200-day moving average and psychological 1.0550 level yesterday, which should provide support if the break holds, next Resistance comes at 1.0625.
The NZDUSD has fallen significantly in the last month (over 5.5%) from 0.6780 down to test 0.6400 today and a 44-month low. Although the has been in the oversold territory for two weeks, the momentum remains biased to the downside. Below 0.6400 support could be found at 0.6350.
Another AUD cross, the AUDCAD broke over the 20-day moving average on last night’s close, confirming a move first initiated on August 13 close at 0.8988. Last night’s close at 0.9025 could run to 0.9050, 0.9080 and the 50-day and another psychological round number at 0.9100. A breach of this level would take the pair back to the previous 100 pip channel between 0.9125-0.9225. The at 47 remains neutral, the histogram is above the signal line but significantly below the 0 line and the Daily ATR sits around the 60 pips level.
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