4 Aug 2015
AUD/NZD bulls back in 1.11 territory on good Aussie data
FXStreet (Guatemala) - AUD/NZD is currently trading at 1.1112 with a high of 1.1125 and a low of 1.1067 still on the back of Aussie data.
AUD/NZD has moved higher back on to the 1.11 handle on the back of key data events with the bird sensitive and vulnerable to positive flows and further demand for the Aussie today.
Retail sales come in 0.7% and better than the consensus of 0.4% while the trade balance showed an improvement on consensus, with both imports and exports increasing at 4% and 3% respectively.
Overnight, the cross was rallying earlier on the back of Origin Energy selling a 53 per cent stake in NZ power company, Contact Energy. This equated to a cent high run the cross when NZD 1.8b was dumped on the market and traded vs the Aussie. This activity came ahead of the RBA today. Bulls were forced in to submission from 1.1119 until 1.1080 support ahead of Australian retail sales and trade balance coming up ahead of the RBA decision.
NZD weighed by commodity prices
The bird was soft again in recent trade with the NZ commodity price index falling to -11.2pct in July and to make matters worse for the bird, with a slow down in Chinese demand, futures markets are pricing in a 10% fall in whole milk powder prices at tomorrows GlobalDairyTrade (GDT) auction which will crucial for where Fonterra's forecast is pitched on Friday. We will also await the labour costs and the unemployment data. Technically, 1.0920 and 1.1120 are the key levels to monitor with 1.1140 to the upside guarding 1.1200 and 1.0900 guarding space towards 1.0760.
AUD/NZD has moved higher back on to the 1.11 handle on the back of key data events with the bird sensitive and vulnerable to positive flows and further demand for the Aussie today.
Retail sales come in 0.7% and better than the consensus of 0.4% while the trade balance showed an improvement on consensus, with both imports and exports increasing at 4% and 3% respectively.
Overnight, the cross was rallying earlier on the back of Origin Energy selling a 53 per cent stake in NZ power company, Contact Energy. This equated to a cent high run the cross when NZD 1.8b was dumped on the market and traded vs the Aussie. This activity came ahead of the RBA today. Bulls were forced in to submission from 1.1119 until 1.1080 support ahead of Australian retail sales and trade balance coming up ahead of the RBA decision.
NZD weighed by commodity prices
The bird was soft again in recent trade with the NZ commodity price index falling to -11.2pct in July and to make matters worse for the bird, with a slow down in Chinese demand, futures markets are pricing in a 10% fall in whole milk powder prices at tomorrows GlobalDairyTrade (GDT) auction which will crucial for where Fonterra's forecast is pitched on Friday. We will also await the labour costs and the unemployment data. Technically, 1.0920 and 1.1120 are the key levels to monitor with 1.1140 to the upside guarding 1.1200 and 1.0900 guarding space towards 1.0760.