AUD Versus NZD: A Fundamental Outlook and Trade
Fundamentals:
It has been a hawkish month for the Reserve Bank of Australia. The recent meeting suggests that their guidance ramps up into a more hawkish tone. Both monetary and fiscal policies are aussie positive, so far. One thing I keep in mind is their fiscal policy in response to the current covid-19 lockdowns.
I believe that the Reserve Bank of New Zealand is overly hawkish, given their currency price. For the next few weeks, the AUD currency give us a more underdog positioning to exploit versus the NZD currency.
Technicals:
(1) Monthly support
(2) 61.8% fib
(3) Oversold indicators
(4) Divergence
(5) RSI at extreme levels
Daily:
Weekly:
It has been a hawkish month for the Reserve Bank of Australia. The recent meeting suggests that their guidance ramps up into a more hawkish tone. Both monetary and fiscal policies are aussie positive, so far. One thing I keep in mind is their fiscal policy in response to the current covid-19 lockdowns.
I believe that the Reserve Bank of New Zealand is overly hawkish, given their currency price. For the next few weeks, the AUD currency give us a more underdog positioning to exploit versus the NZD currency.
Technicals:
(1) Monthly support
(2) 61.8% fib
(3) Oversold indicators
(4) Divergence
(5) RSI at extreme levels
Daily:
Weekly:
Capturing the swings of the stock market & currency market. It's a dirty job and equity/currency traders must do it.
