AUD/NZD Price Analysis — October 19

AUD/NZD Price Analysis — October 19

The AUD/NZD traded through the Monday on a bearish bias, as the pair continued on its descent from last week. The bearishness can be largely attributed to the weakness in the Aussie (AUD) as a result of a recent RBA announcement.

The commodity-related currency dropped across the board after RBA Governor Philip Lowe glossed over the possibility of a rate cut next month. Lowe stated that additional monetary easing would bolster job growth and reduce the pressure bedeviling the currency. The governor hinted that rates could be reduced to a record low of 0.1%.

Meanwhile, the recent announcement that China has placed a ban on Australian coal imports has exerted additional pressure on the Aussie.

In other news, the Kiwi (NZD) has also been exhibiting bearish tendencies over the past few hours. However, prospects of a negative rate should bolster the currency, even though there might be little flow impact from a change in the policy rate. Foreign holdings of the country’s government bonds have increased by NZ$3 billion since May 2020, despite the growing expectations of a negative rate and the yield curve lagging behind its pairs.

That said, the Kiwi appears to have the upper hand despite serious weakness in both currencies.

AUD/NZD – 4-Hour Chart

AUD/NZD Value Forecast — October 19

AUD/NZD Major Bias: Bearish

Supply Levels: 1.0725, 1.0800, and 1.0844

Demand Levels: 1.0600, 1.0550, and 1.0500

 The AUD/NZD resumed on its bearish momentum today, given the current market sentiment. Meanwhile, the pair continues to trade nicely within our descending channel as traders eye the 1.0600 support, which is also the base of our channel, making that level strong support. 

In the meantime, the bearish bias will remain as long as the AUD/NZD continues trading within this channel.

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.