Sees 2% in 4Q 2020 vs 3Q 2020. AUDNZD tests 100 day MA
The RBNZ was less confident about the trajectory of inflation outlook going forward. They see annual CPI 1.6% by June 2019 (down from 1.8%) and the inflation rate reaching 2.0% target in the 4Q of 2020 vs the 3Q of 2020 in the prior report.
The NZDUSD is moving to new session lows ahead of the presses by the RBNZ Gov. Orr at the top of the hour.
The price has now moved back below the 0.6944-51 area which was a swing level on the daily chart. The pair is trading at 0.6934 currently. The low has reached 0.69319. Looking at the hourly chart below, the price is looking to test a lower trend line at 0.6927. A move below is another bearish step for the pair.
Traders that are pushing, will likely now use the 0.6944-516 as a close risk area now. The level was a swing level on the daily chart (see chart below).
Looking at the AUDNZD, the pair has surged higher and is testing the 100 day MA at 1.07598. The price has been below that MA level since January 31. Sellers are leaning against the level on the first look. A break above, will open the door for more upside potential. The 1.07933 is the 38.2% of the move down from the October 2017 high. The 200 day MA and the 50% retracement at 1.0875-879 are other targets.
