FX News - June 9 2014: AUD, NZD Get Boost on Quiet Asian Session

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The aussie and the kiwi were winners in today’s Asian session. This is after a relatively quiet start of the week, with no significant events in coming up in the horizon. The AUD/USD pair broke past the 0.9350 area earlier today after opening the Asian session at a decent 0.9335. It has so far been on a steady rise since last week after the Reserve Bank of Australia made no overly negative remarks on the aussie.

Today’s return to the 0.9350 area brings it to the level reached by the pair during Friday’s European session. However, it was held back by the stronger greenback during the US session.

The AUD/USD pair peaked so far today at 0.9357, and is currently trading at 0.9353, with initial resistance seen at 0.9347, followed by 0.9370. Meanwhile, initial support is at 0.9305, followed by 0.9282.

As for New Zealand, there are growing talks that the Reserve Bank will announce a 25bps increase to its cash rate, which would bring it up to 3.25 per cent. In March’s monetary policy meeting, the RBNZ had implied that it would start raising rates by either June or July, and then a further increase in October or December.

In general, the country’s economic data have shown that it is well on its way to recovery or has already established a level of strength that would justify an increase in rates.

In today’s Asian session, the NZD/USD pair has made a slight recovery after it was pummeled on Friday’s US session. It opened today at 0.8501, and has so far peaked at 0.8518. It is currently trading at 0.8516, with initial resistance seen at 0.8565, followed by 0.8586. Meanwhile, initial support is at 0.8491, followed by 0.8470.

By FX Strategy Team, Published on 9th of June 2014
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