AUD/NZD Price Analysis — September 28

AUD/NZD Price Analysis — September 28

Over the past week, the G10 currencies have been heavily stirred, following a corrective move in the US dollar (DXY). This correction has been the major driver behind the price dynamics in the FX market of late.

Meanwhile, the Australian Dollar (AUD) has been one of the major underperformers, and not just as a result of the USD Price action, but also as a result of the repricing in the Reserve Bank of Australia (RBA), ahead of its October 6 meeting.

Dovish comments from RBA Deputy Governor Debelle about exploring several monetary options disposed to the bank has sparked worries that the cash rate could be lowered by 10 base-points, alongside a cut-down in the 3-year yield curve target. As a result, several traders have now set their focus on the 1.0700 psychological area.

Furthermore, the RBA is set to ease its monetary policy, while the Reserve Bank of New Zealand (RBNZ) remains unchanged for the time being. A relaxation in both the RBA and RBNZ monetary policies, ahead of the October RBA meeting, could put the AUD/NZD in a very precarious situation and could open the pair up to the 1.0600 support.

AUDNZD – 4-Hour Chart

AUD/NZD Value Forecast — September 28

AUD/NZD Major Bias: Bearish

Supply Levels: 1.0800, 1.0844, and 1.0934

Demand Levels: 1.0725, 1.0700, and 1.0664

The AUD/NZD appears to be charging towards the 1.0800 resistance following an easing in the greenback’s bullishness. However, this rally might not last considering the confluence of resistance at the 1.0800 level. Meanwhile, a bearish channel has emerged on our 4-hour chart, indicating that this corrective move in the AUD/NZD might come to an end soon.

That said, it would be interesting to see how this pair reacts with that level in the near-term.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.