HotForex - Analytics


    511.00 8.50/10
    77% of positive reviews

    AUDNZD Update – Talk of parity premature ?


    AUDNZD, Daily            

    Currencies have seen little direction for the most part as we begin the week, though the Australian dollar has been volatile following the inconclusive general election results over the weekend. AUDUSD initially dove, but subsequently managed to rebound to a 10-day peak at 0.7522, despite all three of the main credit ratings responding with warnings about the implications of the election to the government budget.

    The AUD and the NZD have been remarkable robust recently and it led me to review the Analysis from June 15th when I was looking for a retrace before taking a SELL position.  I wrote then that…”Technically, the Daily down trend remains is intact, a potential SELL area appears where the channel, 20 DMA and 23.6 FIB retrace levels coincide between 1.0580 – 1.0620. This would generate Target 1 – 1.0486, Target 2 1.0340 and Target 3 1.0173.  A break above 1.0750 would be of interest for BUY positions.”

    The retrace never occurred and the pair continued to consolidate sideways, the threat of a hung parliament following the Australian general election over the weekend cased the pair to fall to a low of 1.0378 before recovering to north of 1.0450 today.

    The pair remains bearish trading close to the trend line on “Brexit Friday” and again last Thursday, also rejecting the 20 DMA on both occasions too. A clear breach and break of the 1.0450 level on the Daily time frame will generate a SELL position with Target 1  1.0340 and Target 2 at 1.0173.

    Tomorrow (Tuesday) sees Retail Sales from Australia and the RBA decision on interest rates. This will clearly have an impact on the pair as further easing from the RBA cannot be discounted although this is unlikely tomorrow, due in part to the current political uncertainty. Further out (over the next few months) and parity between the two cannot be discounted, much will be dependent on inflation (CPI) in both Australia and New Zealand.   

    Click here to access the HotForex Economic calendar.

    Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:

    Stuart Cowell

    Market Analyst


    Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

    To leave a comment you must or Join us

    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree