We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bullish
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • RT @zerohedge: Is The Market Up This Week? Just Ask The Fed's Balance Sheet https://t.co/6p01J9yAZ8
  • $USD: "The US Dollar is making a last-ditch effort to cling onto a key technical support level after dropping 3% from its 2019 high as risk appetite roars and the Fed inflates its balance sheet." - via @DailyFX Full Analysis: https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2019/12/14/us-dollar-outlook-fx-volatility-rising-from-extreme-lows-usd-levels-to-watch.html https://t.co/87cITJPVQa
  • The $NZD is testing resistance guiding the currency lower against its US counterpart for over two years. Will buyers prevail or be rejected yet again? Get your market update from @IlyaSpivak here:https://t.co/hRsbxhwotM https://t.co/ehlbb43gqd
  • very cool, very legal https://t.co/gsOxPiEdIw
  • $USDCAD is testing slope support into the close of the week with the immediate short bias at risk while above 1.3134/51. Get your USD/CAD technical analysis from @MBForex here:https://t.co/eE9yrNEU80 https://t.co/mszY7ouYRF
  • $EURUSD Daily Pivot Points: S3: 1.0966 S2: 1.1041 S1: 1.1085 R1: 1.116 R2: 1.119 R3: 1.1264 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • The British Pound’s relief rally may still have some room to run: volatility in the $GBP has dropped back to levels typically associated with periods of ‘positive developments’ in the #Brexit process. Get your market update from @CVecchioFX here:https://t.co/uzXRd8y4ck https://t.co/Nxf6opYgLd
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 1.31% 🇨🇦CAD: 0.12% 🇨🇭CHF: 0.09% 🇪🇺EUR: -0.09% 🇳🇿NZD: -0.11% 🇦🇺AUD: -0.48% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/z0x9cPG1TN
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Gold: 0.40% Silver: 0.09% Oil - US Crude: -0.47% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/fpuNos9jTO
  • RT @bbands: Most crypto currencies are at or near Bollinger Band Squeeze levels. Time to pay attention.
Australian Dollar Outlook: AUD/USD, AUD/NZD Levels Ahead of RBNZ

Australian Dollar Outlook: AUD/USD, AUD/NZD Levels Ahead of RBNZ

2019-11-12 21:30:00
Peter Hanks, Junior Analyst
Share:

Australian Dollar Outlook:

Australian Dollar Outlook: AUD/USD, AUD/NZD Levels Ahead of RBNZ

The Australian Dollar may find itself caught in the crossfire of forex volatility when the Reserve Bank of New Zealand delivers its interest rate decision on Wednesday at 00:00 GMT. With the market widely expecting a 25-basis point cut and subsequent pause on rate reductions, any deviation could spark volatility in the New Zealand Dollar and its cousin – the Australian Dollar – given that the currency pairs have historically shared a strong correlation.

Chart of AUD and NZD Correlation Australian Dollar and New Zealand Dollar Ahead of RBNZ Decision

With that in mind, it is important to take stock of the AUD/USD levels at hand in the event of a monetary policy surprise in the South Pacific. Should the RBNZ stray from market expectations and argue that further cuts are warranted, the New Zealand Dollar and AUD/USD would likely fall under pressure as the growth and interest rate expectations for the region are adjusted lower. Consequently, AUD/USD could threaten the pair’s 2016 low around 0.6827 before taking aim at recent support slightly beneath 0.67.

AUD/USD Price Chart: Daily Time Frame (October 2018 – November 2019) (Chart 1)

AUDUSD Price Chart Australian Dollar Technical Analysis

On the other hand, 0.6895 to 0.6920 marks an area of considerable confluence to the topside, threatening to keep a lid on Aussie price gains. A break above the zone could open the door for a continuation higher in the days to come, a key aspect of my AUD/USD analyst pick which is awaiting bullish confirmation.While AUD/USD and NZD/USD look to wrestle with the relative strength of the US Dollar, AUD/NZD is a pair which is likely to receive a more direct injection of volatility. Further, the potential for outsized moves is greater given the pair’s lower liquidity.

With that being said, Monday’s RBNZ rate decision has the opportunity to fundamentally alter the pair’s landscape. With AUD/NZD enjoying a 2.65% climb in the year-to-date, any indication that the RBNZ will lower rates further could fuel another leg higher, while a pause in easing – as expected - may leave the pair longing for direction alongside plummeting rate cut odds from the RBA.

AUD/NZD Price Chart: Daily Time Frame (August 2018 – November 2019) (Chart 2)

AUDNZD Price Chart New Zealand Dollar Technical Analysis

To that end, AUD/NZD price gains in 2019 assert the pair is leaning higher at this time, but considerations remain. Notably, the pair has struggled to surmount the 1.084 level recently and could threaten to offer resistance prior to the Fibonacci level around 1.089. As the market awaits the Reserve Bank of New Zealand’s decision, follow @PeterHanksFX on Twitter for further updates and analysis and check back at DailyFX for commentary on the decision’s impact.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more:Stock Market Outlook Weakens After US-China Meeting Delayed

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.