Forex Market: AUD/NZD daily trading forecast

Yesterday’s trade saw AUD/NZD within the range of 1.1146-1.1226. The pair closed at 1.1159, losing 0.52% on a daily basis.

At 7:54 GMT today AUD/NZD was down 0.39% for the day to trade at 1.1119. The pair broke the first key daily and the first key weekly support levels and touched a daily low at 1.1109 at 3:20 GMT.

Fundamental view

New Zealand

Reserve Bank of New Zealand (RBNZ) probably left its benchmark interest rate (the official cash rate) without change at 3.50% at the policy meeting today. The central bank raised borrowing costs by 25 basis points (0.25%) to the current 3.50% at the July 23rd meeting, which marked the fourth consecutive increase in rates this year. According to RBNZ, New Zealands economy is projected to expand at an annualized pace of 3.7% in the current year. The bank also indicated that the rate-hike campaign would be put on hold in order to let the economy adjust to monetary policy tightening.

Short-term interest rates are of utmost importance for the valuation of national currencies. In case the Reserve Bank of New Zealand is hawkish about inflationary pressure in economy and, thus, decides to introduce another rate hike, this would certainly provide a boost to the kiwi dollar.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.1177. In case AUD/NZD manages to breach the first resistance level at 1.1208, it will probably continue up to test 1.1257. In case the second key resistance is broken, the pair will probably attempt to advance to 1.1288.

If AUD/NZD manages to breach the first key support at 1.1128, it will probably continue to slide and test 1.1097. With this second key support broken, the movement to the downside will probably continue to 1.1048.

The mid-Pivot levels for today are as follows: M1 – 1.1073, M2 – 1.1113, M3 – 1.1153, M4 – 1.1193, M5 – 1.1233, M6 – 1.1273.

In weekly terms, the central pivot point is at 1.1229. The three key resistance levels are as follows: R1 – 1.1345, R2 – 1.1432, R3 – 1.1548. The three key support levels are: S1 – 1.1142, S2 – 1.1026, S3 – 1.0939.