It’s onwards and upwards for the Australian Dollar (AUD) , leaving the New Zealand Dollar (NZD) in the dust. The cross reached 0.8860 (1.1285) this morning, a March 2016 level. Although both currencies have been undermined by global fears and policy tightening by other central banks that may tip the balance into a world recession, the Australian Dollar has fared better based on a tighter labour market and an overall sturdy economy which is fast heading towards “neutral” policy. The RBNZ has more “work” to do to achieve a balanced economy. Meanwhile the pair could test 0.8800 (1.1365) levels in the short to medium term with Australia fending off recession warnings.
Current Level: 0.8856 (1.1282)
Resistance: 0.8945 (1.1420)
Support: 0.8755 (1.1180)
Last Weeks Range: 0.8884-0.8944 (1.1180-1.1256)