AUD/NZD potential swing trade long above the April low
AUD/NZD has fallen 3% since the April high, although it looks set to build a base above the April low. A Rikshaw Man Doji formed on the daily chart above this key support level and a bullish RSI is forming on the RSI (2) to hint at a near-term inflection point.
What may help it rally from here is Bloomberg's report that the RBA considered three rate paths ahead of their February meeting, two of which saw rates climbing to 4.8%, and the other at 3.35%. Given rates are now 3.8%, it leaves room for more hikes and for the RBA OCR to close the gap with RBNZ's.
The bias remains bullish above the April low and for a counter-trend rally towards the 1.7034 high.
What may help it rally from here is Bloomberg's report that the RBA considered three rate paths ahead of their February meeting, two of which saw rates climbing to 4.8%, and the other at 3.35%. Given rates are now 3.8%, it leaves room for more hikes and for the RBA OCR to close the gap with RBNZ's.
The bias remains bullish above the April low and for a counter-trend rally towards the 1.7034 high.
Comment:
Initial target reached, thanks to an RBNZ survey revealing that CPI expectations had plummeted at their fastest pace since the pandemic. All bets for another RBNZ hike are off, NZD was the weakest major on Thursday and Friday.
Trade closed: target reached
