AUD/NZD: Upward Momentum Pattern
The
AUDUSD
rallied during today's Asian session after the Reserve Bank of Australia statement supported the currency. The most notable change in the wording of the RBA statement is the change from the view seen in May-July that further AUD "depreciation seems both likely and necessary". Instead it was removed and replaced with a statement that AUD "is adjusting to the significant declines in key commodity prices." The new wording shows RBA is more satisfied with the AUD's current value. It has helped AUDUSD accelerate to near two-week highs against the US dollar.
We suggest paying attention to
AUDNZD
in which the Aussie looks much stronger long-term. Since April lows the pair has compeleted a rising 5-wave sequence followed by a 3-wave correction. It's not clear yet if the correction is over, for it may be more complex. Anyway, we expect AUDNZD to move up, at least to the area of previous swing high around 1.1350. The current resistance stands at 1.1192-1.1200.
AUDUSD
rallied during today's Asian session after the Reserve Bank of Australia statement supported the currency. The most notable change in the wording of the RBA statement is the change from the view seen in May-July that further AUD "depreciation seems both likely and necessary". Instead it was removed and replaced with a statement that AUD "is adjusting to the significant declines in key commodity prices." The new wording shows RBA is more satisfied with the AUD's current value. It has helped AUDUSD accelerate to near two-week highs against the US dollar. We suggest paying attention to
AUDNZD
in which the Aussie looks much stronger long-term. Since April lows the pair has compeleted a rising 5-wave sequence followed by a 3-wave correction. It's not clear yet if the correction is over, for it may be more complex. Anyway, we expect AUDNZD to move up, at least to the area of previous swing high around 1.1350. The current resistance stands at 1.1192-1.1200.