- AUD/NZD extends upside for 2nd successive session, intraday bias higher.
- kiwi dented as RBNZ stays pat and warns of rate cut if inflation drops further. Weakness in the kiwi is helping the pair higher.
- The RBNZ Governor Spencer took note of the rise in the nominal exchange rate earlier today.
- RBNZ Assistant Governor McDermott has warned that central bank could use different language if the NZD exchange rate appreciates on a trade-weighted index (TWI) basis.
- The pair has broken above 200-DMA resistance at 1.0846 and is currently trading at 1.0865 levels.
- We see next major resistance at 20-DMA at 1.0921. Break above could see test of 100-DMA at 1.0993.
Support levels - 1.0846 (200-DMA), 1.0825 (5-DMA), 1.0750 (trendline)
Resistance levels - 1.0921 (20-DMA), 1.0993 (100-DMA), 1.1050 (Jan 4 high)
Recommendation: Good to go long on decisive break above 200-DMA, SL: 1.0745, TP: 1.0920/ 1.0990/ 1.1025.
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