Kiwi has fallen due to a large drop of dairy prices over the last few months and a pause on the rate hikes by the RBNZ. RBNZ central banker talked the kiwi down from breaking all time highs wth threats of direct intervention.... now nzdusd sits around 500 pips lower. I think the fall in kiwi will stabilize at these levels.
Aussie on the other hand has been pretty resistant to any dramatic falls, even though its own commodity prices have fallen substantially and the RBA is not signalling a rate hike anytime soon. The RBA actually reduced growth and inflation forecasts for the coming year, and the last employment figures have been rather lack luster.
Given my outlook that kiwi stabilizes and aussie has some more room to the downside... an audnzd short is in order. Currently the pair is sitting in the oversold territory accroding to the daily RSI and seems to have been strong resistance around the 1.1160 area.
Aussie on the other hand has been pretty resistant to any dramatic falls, even though its own commodity prices have fallen substantially and the RBA is not signalling a rate hike anytime soon. The RBA actually reduced growth and inflation forecasts for the coming year, and the last employment figures have been rather lack luster.
Given my outlook that kiwi stabilizes and aussie has some more room to the downside... an audnzd short is in order. Currently the pair is sitting in the oversold territory accroding to the daily RSI and seems to have been strong resistance around the 1.1160 area.