- AUD/NZD recovers from Monday losses, trades above 1.0350
- China’s real-estate Evergrande weighs on the market sentiment
- On Tuesday, the RBA will release its last meeting minutes.
- RBNZ’s Hawksby: We had more confidence that employment was at its maximum sustainable level
After trading lower on Monday, the AUD/NZD is pairing some of its losses, is trading at 1.0347 up 0.25% at the time of writing. The market sentiment is in risk-off mode caused by China’s Evergrande woes and the Delta variant spread, triggering a flight towards safe-haven assets.
Reserve Bank of Australia minutes to be released at 0130 GMT
The Reserve Bank of Australia will unveil its monetary policy minutes. Despite the Delta variant outbreak in the last month and stringent measures imposed by Prime Minister Morrison, the RBA kept its decision to reduce its weekly bond purchases from A$5 Billion to A$4 Billion, nevertheless extended the duration of the program until at least February of 2022. The latter was due to support the Delta outbreak ongoing in the country.
In the New Zealand economic docket, the RBNZ Assistant Governor Christian Hawkesby hit the wires. He made comments about monetary policy that the statement showed that the bank had more confidence that employment was at its maximum sustainable level. Additionally, he said, “that monetary policy response would be required for future health lockdowns if there was more enduring impact on inflation, employment.”
Read more: RBNZ’s Hawksby: We had more confidence that employment was at its maximum sustainable level
Later in the day, the NZ Credit Card Spending for August (YoY) and the NZ GDT Price Index will be released. The previous readings were 6.9% and 4%, respectively.
AUD/NZD Price Forecast: Technical outlook
The AUD/NZD is trading well below the daily moving averages, suggesting downward pressure. The pair is trading above the 38.2% of its latest Fibonacci retracement but beneath a downslope trendline that acts as the first resistance level, around 1.0365-70. A break above that trendline could push the AUD/NZD pair towards the 61.8% Fibo retracement level at 1.0386, followed by a challenge to 1.0400.
On the flip side, failure at 1.0365-70, the bears could exert downward pressure on the pair, exposing the 1.0300 level and the possibility of a retest of this year’s lows at 1.0278.
The Relative Strength Index is at 42.06, aiming higher, though it remains below the 50-midline, still supporting the downward bias.
KEY TECHNICAL LEVELS TO WATCH
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.