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5 May 2015
AUD/NZD jumps on upbeat RBA
FXStreet (Mumbai) - The AUD/NZD jumped more than 100-pips from the daily low to trade at 1.0473 after the Reserve Bank of Australia (RBA) cut rates but sounded more upbeat on the recent economic data.
A change in the air for AUD/NZD – Nomura
If the market is long after a cut - there certainly seems to be a change in the air, says Nomura. RBA did announce an interest rate cut and retained concern about AUD - "further depreciation seems both likely and necessary". However, the bank ditched its easing bias - further easing of MP may be appropriate over the period ahead.
Furthermore, the RBA also sounded upbeat on the recent local economic data. Consequently, the AUD/NZD jumped from the low of 1.0344 to set a session high of 1.0475.
AUD/NZD Technical Levels
The immediate resistance is located at 1.0517, above which gains could be extended to 1.0568. On the other hand, a break below 1.04 could drive the pair lower to 1.0344.
A change in the air for AUD/NZD – Nomura
If the market is long after a cut - there certainly seems to be a change in the air, says Nomura. RBA did announce an interest rate cut and retained concern about AUD - "further depreciation seems both likely and necessary". However, the bank ditched its easing bias - further easing of MP may be appropriate over the period ahead.
Furthermore, the RBA also sounded upbeat on the recent local economic data. Consequently, the AUD/NZD jumped from the low of 1.0344 to set a session high of 1.0475.
AUD/NZD Technical Levels
The immediate resistance is located at 1.0517, above which gains could be extended to 1.0568. On the other hand, a break below 1.04 could drive the pair lower to 1.0344.