- AUD/NZD recovers from Monday losses, trades above 1.0350
- China’s real-estate Evergrande weighs on the market sentiment
- On Tuesday, the RBA will release its last meeting minutes.
- RBNZ’s Hawksby: We had more confidence that employment was at its maximum sustainable level
After trading lower on Monday, the AUD/NZD is pairing some of its losses, is trading at 1.0347 up 0.25% at the time of writing. The market sentiment is in risk-off mode caused by China’s Evergrande woes and the Delta variant spread, triggering a flight towards safe-haven assets.
Reserve Bank of Australia minutes to be released at 0130 GMT
The Reserve Bank of Australia will unveil its monetary policy minutes. Despite the Delta variant outbreak in the last month and stringent measures imposed by Prime Minister Morrison, the RBA kept its decision to reduce its weekly bond purchases from A$5 Billion to A$4 Billion, nevertheless extended the duration of the program until at least February of 2022. The latter was due to support the Delta outbreak ongoing in the country.
In the New Zealand economic docket, the RBNZ Assistant Governor Christian Hawkesby hit the wires. He made comments about monetary policy that the statement showed that the bank had more confidence that employment was at its maximum sustainable level. Additionally, he said, “that monetary policy response would be required for future health lockdowns if there was more enduring impact on inflation, employment.”
Read more: RBNZ’s Hawksby: We had more confidence that employment was at its maximum sustainable level
Later in the day, the NZ Credit Card Spending for August (YoY) and the NZ GDT Price Index will be released. The previous readings were 6.9% and 4%, respectively.
AUD/NZD Price Forecast: Technical outlook
The AUD/NZD is trading well below the daily moving averages, suggesting downward pressure. The pair is trading above the 38.2% of its latest Fibonacci retracement but beneath a downslope trendline that acts as the first resistance level, around 1.0365-70. A break above that trendline could push the AUD/NZD pair towards the 61.8% Fibo retracement level at 1.0386, followed by a challenge to 1.0400.
On the flip side, failure at 1.0365-70, the bears could exert downward pressure on the pair, exposing the 1.0300 level and the possibility of a retest of this year’s lows at 1.0278.
The Relative Strength Index is at 42.06, aiming higher, though it remains below the 50-midline, still supporting the downward bias.
KEY TECHNICAL LEVELS TO WATCH
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD remains vulnerable near 26-month low amid bullish USD
AUD/USD holds steady above the 0.6200 mark on Friday, though it remains close to its lowest level since October 2022 touched the previous day. The USD hovers near a two-year top on the back of the Fed's hawkish signal and a weaker risk tone. Furthermore, the RBA's dovish shift, concerns about China's economic recovery and trade war fears undermine the Aussie.
USD/JPY advances to a five-week high, around 158.00 neighborhood
USD/JPY hit a five-month top on Friday in the wake of the Fed's hawkish outlook and the BoJ's decision to keep interest rates steady. Bulls largely shrugged off data showing that Japan's National CPI rose in November, which bodes well for an additional interest rate hike by the BoJ.
Gold price oscillates in a range below $2,600 amid mixed cues
Gold price consolidates below the $2,600 mark following the previous day's good two-way price move and remains close to over a one-month low. The Fed signaled a cautious path of policy easing next year, which remains supportive of elevated US bond yields and assists the USD in standing firm near a two-year high.
Bitcoin's trajectory shows similarities with previous cycles as long-term holders book profits of $2.1 billion
Glassnode's Week on Chain report revealed the similarities between the current Bitcoin uptrend and previous cycles amid changing market conditions. Meanwhile, long-term investors began distributing their tokens at the $100K level, culminating in a new all-time high of $2.1 billion in realized profits.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.