AUD/USD, NZD/USD, USD/CNY – Kiwi Soars on RBNZ ShockerIt is the New Zealand dollar’s day to shine. The currency is up over 1.0%, after the RBNZ did not cut rates, as expected. The Australian dollar and Chinese yuan are steady.
AUD/USD is flat in Wednesday trade. In the European session, the pair is trading at 0.6845, up 0.06%. The Aussie failed to piggyback on the upward movement of the New Zealand dollar, which has jumped over 1.0%.
Wage Growth Ticks Lower
Australia’s wage price index dipped to 0.5% in the third quarter, down from 0.6% in Q2. This reading matched the forecast. This will be followed by key employment releases on Thursday, and if the numbers are soft, this could mean another rate cut by the RBA is not far away. There was good news on the consumer front, as Westpac Consumer Sentiment rebounded with a strong gain of 4.5%, after two consecutive declines.
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AUD/USD Technical Analysis
AUD/USD remains range-bound in what has been a lackluster week. On the upside, there is resistance at 0.6920. On the downside, 0.6840 is an immediate support line and remains vulnerable to a breakout. The 50-EMA line remains relevant and is just below the pair, at 0.6834. Lower, 0.6807 is protecting the round number of 0.6800.
USD/CNY is trading sideways on Tuesday. In the European session, the pair is trading at 7.0125, up 0.09% on the day. There are no Chinese events on the schedule, but investors will be keeping an eye on industrial production, which will be released on Thursday.
USD/CNY Technical Analysis
The pair continues to hover close to the symbolic line of 7.00, and is not showing any signs of stronger movement. On the upside, we find resistance at 7.0400. Above, the 50-EMA is currently at 7.0572. On the downside, there is support at 6.9735, which was tested late last week. Below, we have support at 6.9500.
NZD/USD has climbed sharply on Wednesday. In the European session, the pair is trading at 0.6404, up 1.07% on the day.
Kiwi Soars after RBNZ Surprise
The New Zealand dollar is at a 1-week high, courtesy of the New Zealand central bank. Analysts had forecast that the bank to trim the benchmark rate to 0.75%, but the RBNZ defied expectations and maintained rates at an even 1.00%. Policymakers expressed said with current economic conditions did not warrant a change in monetary policy.
NZD/USD Technical Analysis
NZD/USD surged above resistance at 0.6357 in the Asian session and is putting pressure on resistance at 0.6420. This line could be tested later in the day. As well, the pair is slightly below a Fibonacci level, at 0.6441. On the downside, there is support at the round number of 0.6300, which was last tested in mid-October. I continue to monitor the 50-EMA, which is flirting with the candlesticks.