AUDNZD Target Still Stands at 1.2200
We’re seeing the AUDNZD consolidate as the Reserve Bank of Australia (RBA) kept the benchmark interest rate at 3.00% in March, but we will stick to our short from 1.2350 as the relative strength index remains capped by the 57 figure. With the RBA interest rate decision out of the way, the 4Q GDP report is expected to show the Australian economy growing 0.6% during the final three-months of 2012 following the 0.5% expansion in the third-quarter, but the data may fall short of market expectations as the region faces a slowing recovery. As Governor Glenn Stevens leaves the door open to lower the benchmark interest rate further, we will preserve our bearish forecast for the AUDNZD, and will continue to look for a move back towards the 1.2200 figure as the pair appears to be carving a lower top coming into March.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.