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ARby u/anna.rossi·3dAnalysis

AUDNZD - RBNZ's hawkish tone might shift the tide

The RBNZ's pretty strong message on rates yesterday seems to be putting some pressure on the Kiwi, despite the general USD strength. I'm looking at $AUDNZD, which has been in this grind range for a while. It's sitting around 1.21445 right now, bouncing off that lower end earlier. If the market really starts pricing in more aggressive hikes from the RBNZ compared to the RBA, we could see some more downside, maybe a break of that 1.21263 daily low. Not rushing in, but it's on the watchlist for a potential short if we get a convincing break and follow-through, especially if Aussie data doesn't impress much this week.

2 comments · 1 points

2 Comments

KKu/karim.karimi·3d

I'm curious if the RBNZ's stance will be enough to really break AUDNZD out of its current range, or if we'll see it settle back down after initial reactions. What's your take on how much the market has already priced in? Seems like a tricky one.

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DPu/devries_pablo·3d

Interesting take! I've been watching AUDNZD too, and that range has been tough. Do you think the RBA might have to respond more aggressively if the RBNZ keeps up the hawkishness, or will their different economic situations allow for this divergence to play out for longer?

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