The AUD and NZD Open Green Again in Asian Trade
Rowan Crosby • 1 min read
The AUD and NZD are opening in the green today after gaining ground overnight.
The AUD/USD moved higher in the US session and once again it was the 0.7000 level that is helping prop things up.
Overall markets were higher yesterday lead by US equity markets which closed nearly 2% higher. As I was saying yesterday, the recent sell-off in the AUD was largely due to the comments fro the RBA that we could be seeing further rate cuts in October. Those sentiments have slowly been easing with talk just yesterday that the banks feel the rate cut will more likely be November, so that too probably helped lift the AUD/USD higher.
Technically, we can see on the chart that price jumped up and nearly made its way to 0.7100, before pulling back. Price also took out the prior high and that likely has contributed to some short-term buying.
That said as the day pushes on we are seeing price retrace now and if it was to fall under where it started, that might actually be quite bearish.
The NZD/USD has followed a similar pattern in the last day or two, however, it is not as far advanced in the technical breakout compared to the Aussie.
Price is really coiling around the 0.6550 level and things could very much go either way at the moment. The levels to watch are really 0.6600 to the upside and 0.6525 below. A break of either will trigger more momentum.
A fall under 0.6500 would be hugely bearish.
The Kiwi isn’t as volatile at the moment and the most focus is really the outcome of the RBA next week and that is still weighing on the NZD indirectly.