Daily Outlook

NZD/USD has broken back above 0.7000 this morning and surged to 12 month highs above 0.7120 as the RBNZ disappointed the Doves and sounded upbeat on the New Zealand Economy. Although they noted the NZD strength did impact inflation which is stubbornly low they noted further rate cut would over stimulate the housing market.

AUD/USD extended its rally overnight to 0.7500 as Oil and Gold continue to rally. Further gains now will likely rest on next week’s FOMC meeting and how dovish the FED statement.

AUD/NZD however is now at fresh year lows at the key 1.0500 level. AUD/NZD 1.0000 or Parity as it called in the Forex markets has not been seen since both countries floated their currencies.

WTI/USD has continued high after breaking $50 and we have stabilized at $51.50. The Strongest currency in the market is the Canadian dollar as it enjoys the flow on effects of Oil’s Rally.

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Trade AUD/USD Intraday: further advance. Pivot: 0.7415 Our preference: long positions above 0.7415 with targets @ 0.7515 & 0.7545 in extension. Alternative scenario: below 0.7415 look for further downside with 0.7380 & 0.7355 as targets. Comment: the RSI calls for a new upleg. Supports and resistances: 0.7570 0.7545 0.7515 0.7489 Last 0.7415 0.7380 0.7355

Trade NZD/USD Intraday: further advance. Pivot: 0.6980 Our preference: long positions above 0.6980 with targets @ 0.7135 & 0.7185 in extension. Alternative scenario: below 0.6980 look for further downside with 0.6940 & 0.6890 as targets. Comment: the RSI calls for a new upleg. Supports and resistances: 0.7230 ** 0.7185 ** 0.7135 ** 0.7109 Last 0.6980 *** 0.6940 *** 0.6890 ***