AUDNZD looks to be on the turn from trendline resistance
AUDNZD looks to come into view this week as the RBA rate decision points towards a fresh hike from Bullock & co. However, we are seeing signs that the Australian dollar could underperform against their neighbours. It is worthwhile noting that an additional 25 basis point hike from the RBA would still see their cash rate stands at 4.35%. Well below the 5.50% level seen from the RBNZ. Thus it remains more attractive to move funds into NZD than AUD.
The gains seen over the course of the past month were built on a reversal from trendline support. However, we are seeing an inside trendline provide resistance here, signalling the potential for a bearish reversal for this pair. The decline through 1.0845 on Friday brought an end to the trend of higher lows, signalling a high likeliness that the next rally would represent a retracement before we turn lower and begin a bearish phase. With that in mind, short-term upside looks to provide a potential opportunity for the bears to obtain a better price. A break back below the recent low of 1.0845 would provide a fresh bearish signal for the pair, whereas a rise up through the 1.094 level required to signal a potential bullish continuation for AUDNZD.
The gains seen over the course of the past month were built on a reversal from trendline support. However, we are seeing an inside trendline provide resistance here, signalling the potential for a bearish reversal for this pair. The decline through 1.0845 on Friday brought an end to the trend of higher lows, signalling a high likeliness that the next rally would represent a retracement before we turn lower and begin a bearish phase. With that in mind, short-term upside looks to provide a potential opportunity for the bears to obtain a better price. A break back below the recent low of 1.0845 would provide a fresh bearish signal for the pair, whereas a rise up through the 1.094 level required to signal a potential bullish continuation for AUDNZD.