Posted on: 10 March 2016, by: Pepperstone Support, category: Market Review
The news for oil markets: DoE inventories showed a 3.5mn build, which was less than the API signalled.
The RBNZ has surprised with a 25bps rate cut and signaled more easing to come. NZD dropped a full cent post cut and went out on the lows with no bounce to speak of. The 200dMA sits relatively close to spot and we would watch .6628 on a closing basis to signal a potential move to the January lows. Wheeler did suggest that the banks projections were based on the Kiwi 5% lower, which is on par with the projected move in the tech’s. AUDNZD sprung from 1.1050 towards 1.1250/65. Overhead, a weekly close above 1.1380 points to a bigger picture move towards 1.20/1.25.
The bid in oil helped USDJPY rally above 113.20 and was a net positive for the G-10 commodity bloc. USDCAD, for starters, has blown through the 200dMA at 1.3307. We look for support near 1.3222 to offer attractive risk/reward for longs ahead of the Canadian budget and all-important FOMC still on tap.
AUDUSD was also heavily in focus throughout the session and while the RBNZ decision didn’t hit it hard, spot fell from the 0.7510 region towards just 0.7480.