Listen to the latest market mood for the AUDNZD pair.
Strong AUD, Weak NZD
The Reserve Bank of New Zealand said that recent monetary policy actions are working to lower rates in New Zealand and that they are actively working on negative interest rates, as well as for funding for a lending program. There were also comments from the RBNZ’s Chief Economist Young Ha who said we’d rather be aggressive with stimulus and rather do too much too soon than too little too late.
The RBA has opened the door to a rate cut too, but there is still enough of policy divergence between the RBA and the RBNZ here for a short-term AUDNZD upside bias over the next couple of sessions.
Therefore, expect AUDNZD buyers at pullbacks.
Trade Risks: Any negative news between China and Australia will weaken the AUD and invalidate this outlook.