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22 Apr 2013
Forex: AUD/NZD drifting lower towards 1.2160 pivot support
FXstreet.com (Barcelona) - The AUD/NZD is trading lower to start the week, down 27 pips at 1.2191. There will be plenty of economic data in coming sessions which could have influence on the pair. China PMI will be released on April 23rd at 2:30 GMT, followed by RBNZ announcing its interest rate decision later on in the session at 21:00 GMT. Finally, Aussie CPI will hit the tape on April 24th at 1:30 GMT.
According to analysts at NAB Global Markets: “NAB is expecting a Q1 CPI outcome of 0.5% for underlying inflation (past six months 2% annualised). We also see downside risks to the inflation outlook and sub-2% is possible. NAB continues to expect the RBA to cut twice ahead.”
The weekly chart shows how important the 1.2160 support level is going forward. This level has held support numerous times in the past. A break below here could potentially open the doors for further declines to 1.2060 (also support on weekly chart). First resistance is at 1.2254 (resistance on 60 min chart), followed by 1.2321 (the 20dma).
According to analysts at NAB Global Markets: “NAB is expecting a Q1 CPI outcome of 0.5% for underlying inflation (past six months 2% annualised). We also see downside risks to the inflation outlook and sub-2% is possible. NAB continues to expect the RBA to cut twice ahead.”
The weekly chart shows how important the 1.2160 support level is going forward. This level has held support numerous times in the past. A break below here could potentially open the doors for further declines to 1.2060 (also support on weekly chart). First resistance is at 1.2254 (resistance on 60 min chart), followed by 1.2321 (the 20dma).