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21 Mar 2013
Forex: AUD/NZD breaks 1.2560 base; no clear demand until 1.2480/1.2500
FXstreet.com (Barcelona) - Following the major recovery off 1.2120 year low, the AUD/NZD found temporary top ahead of 1.27 last week, from which the pair established a 3/4 day consolidation with a resilient base at 1.2560.
The release of much better-than-expected growth numbers in New Zealand minuted ago, however, has been a burden too heavy to shoulder by buyers of the pair, giving up the mentioned support to now face the next area of shy bids at 1.2530, day lows.
From a supply and demand perspective, the Kiwi may enjoy further room to appreciate until it encounters the next area of significant demand, thought to be around 1.2460/80, as per rally from March 13, without underestimating the 1.25 just overhead.
On the upside, for buyers to regain the upper hand, first a recovery an hold above 1.2560 is required, then more importantly, they need to absorb fresh area of supply from 1.2610 up to 1.2640. Only above the latter, the 1.27 may be eyed again.
The release of much better-than-expected growth numbers in New Zealand minuted ago, however, has been a burden too heavy to shoulder by buyers of the pair, giving up the mentioned support to now face the next area of shy bids at 1.2530, day lows.
From a supply and demand perspective, the Kiwi may enjoy further room to appreciate until it encounters the next area of significant demand, thought to be around 1.2460/80, as per rally from March 13, without underestimating the 1.25 just overhead.
On the upside, for buyers to regain the upper hand, first a recovery an hold above 1.2560 is required, then more importantly, they need to absorb fresh area of supply from 1.2610 up to 1.2640. Only above the latter, the 1.27 may be eyed again.