Tuesday, November 3, 2015

AUD/NZD strong on interest rate differentials

FXStreet (Guatemala) - AUD/NZD has been better bid in a drift while markets get behind the Aussie in anticipation of the RBA leaving rates on hold.

However, a dovish statement could be the catalyst for a sell-off on a key event week for the greenback as the possible prelude for a Dec hike from the Fed. That said, the RBNZ is also expected to act in December while futures markets indicate lower milk prices to follow, all of which should be supportive to the cross. Markets are very much on the fence as to whether the RBA will make a move today and what tone might be expected from the statement. For the

RBA interest rates preview: What to expect in AUD/USD?

AUD/NZD levels

Technically, the cross is making a minor recovery that could soon turn in to a major recovery targeting 1.1000 on fundamentals due the interest rate differential outlooks between the two central banks. The 200 SMA on the hourly chart is first upside target at 1.0626 ahead of 1.0690 and 1.0800 late October recovery high reaching the 200 SMA descending resistance. The downside targets 1.0500 ahead of prospects for parity on the wide.
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