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Jul 31 - 08:36 AM
AUD/NZD - COMMENT-AUD/NZD Now Points The Right Way; Higher Levels Calling
First appeared on eFXplus on Jul 31 - 06:35 AM

AUD/NZD again bouncing away from the 76.4% Fibonacci retrace level, 1.0381, off the recent 1.0275 to 1.0726 climb.
Last week's doji candle warned of a direction change, and a bullish engulfing line is developing this week.
The 200-DMA, currently 1.0542, is a target.
Such a move would also deliver a near full retracement of the 1.0544 to 1.0387 July 5-31 drop.
AUD bears took a drubbing in Asia as Australian CPI data triggered a shakeout of market shorts nL4N24W0UR.
The second-quarter inflation data beat expectations and brought a swift reversal in AUD/USD, which had recorded an eight-day losing streak, the longest daily decline since 2015.
With the RBA now looking ahead of the curve and the RBNZ behind the curve, the rally in AUD/NZD positions the cross for a run higher.
RBA's not out of the woods just yet, with inflation still below the bank's 2% to 3% target and further rate cuts still in play.
However, the New Zealand situation suggests the RBNZ has more work to do.

AUD/NZD daily candle chart: Click here

Source:
Refinitiv IFR Research/Market Commentary

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