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AUD/NZD shoots beyond 1.1300 - at 19-month highs

FXStreet (Mumbai) - The New Zealand dollar was hammered by its OZ counterpart in the European trades, lifting AUD/NZD nearly 150 pips higher so far. The cross jolted higher mainly driven by Kiwi weakness after a business confidence survey and building consents data released today added to the case for further RBNZ policy easing.

AUD/NZD rises from 1.1212

Currently, the AUD/NZD pair rallies 1.24% to 1.1349, retreating from fresh nineteen month highs reached at 1.1369 levels during last hours. The bid tone in AUD/NZD heightened after the Kiwi was smashed to fresh five year lows sub 0.68 levels as traders weigh rate cut bets following the latest set of downbeat NZ fundamentals.

ANZ's Business Confidence survey showed a net 2.3% of firms felt that the outlook for business and the economy was weaker in June. Building consents data also painted a grim outlook for the economy, with consents showing no change last month, following a 0.9% decline in April.

While the Aussie remains supported despite the text of the RBA Stevens speech in London revealed the central banker feels the inflation is “a bit too low globally” and thus he sees a very loose monetary policy across the globe for a while.

AUD/NZD Technical Levels

The pair has an immediate resistance at 1.1369 (Today’s High) levels, above which gains could be extended to 1.1400 (Nov 2013 Levels). On the flip side, support is seen at 1.1300 levels from here it to 1.1212 (Today’s Low) levels.

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