AUD/NZD Down 9 Pips in Last Hour, 2 Day Down Streak Broken; Crosses 20 Day Moving Average

Hourly Update

(Last Updated August 4, 2022 1:37 GMT)

At the time of this writing, AUDNZD’s rate is down -9 pips (-0.08%) from the hour prior. The hourly chart shows that AUDNZD has seen 2 straight down hours. Regarding the trend, note that the strongest trend exists on the 50 hour timeframe. The moving averages on the hourly timeframe suggest a choppiness in price, as the are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

AUDNZD End of Day Recap

Updated 00:30 GMT (04:30 EST)

AUDNZD entered today at 1.1074, up 16 pips (0.14%) from the day prior. Compared to its peers in the Forex, AUDNZD gave its buyers a return that ranked 19th in terms of percentage change since the day prior. Let’s take a look at price chart of AUDNZD.

AUDNZD

AUDNZD Technical Analysis

Notably, AUDNZD crossed above its 20 day moving average yesterday. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving up. For additional context, note that price has gone up 6 out of the past 10 days.

The View From Around the Web

Not much in terms quality buy/sell signals we’re seeing for AUDNZD; just 2 sell signals and 0 buy signals. This imputes a buy/sell ratio of 0, which is quite bearish. Here’s a piece we found on forexlive.com; below is a short snippet from it to give you a taste.

ANZ Research discusses NZD outlook and targets NZD/USD at 0.63 and AUD/NZD at 1.13 by end of Q3.

“The NZ dollar finished the month on a stronger footing than it started. From a fundamental perspective, however, there is reason to doubt the good times will last. For one, the NZ dollar’s rate advantage is diminishing. The RBNZ’s early moves have been more than matched by equal or bigger moves by other G10 central banks. New Zealand was first to cut rates, first out of the pandemic and first to shift away from quantitative easing and towards hiking rates. As a result, it is the first to feel the pressure of higher borrowing costs. Combined with strong nontradeables inflation, cost-of-living pressures are becoming a major issue for consumers. Housing price declines are also outstripping G10 peers. We believe this will prompt the market to start pricing downside risks for the economy and possible rate cuts,” ANZ notes.

“As a consequence, we see further room to run for AUD/NZD as the Australian economy outperforms. Longer term fundamentals are also weighing on the NZD, as ongoing falls in dairy prices see further deterioration in the current account deficit. Consequently, we have reduced our year end forecast to USD0.63 from 0.66,” ANZ adds.

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This article was written by Adam Button at www.forexlive.com.