Forex Flash: AUD/USD, look for support around 1.0115 to hold - BNZ

FXstreet.com (Barcelona) - In view of Mike Jones, currency strategist at Bank of New Zealand, another RBA rate cut would look too much, a statement that contradicts their colleagues at NAB, still expecting another 25bps cut in June.

Mike adds: "We are not rushing to revise lower our AUD forecasts, rather, we look for support around 1.0115 to hold. This has not been tested yet, with overnight AUD/USD losses only extending as far as 1.0160 (from 1.0240 prior to the RBA)."

May 8, 2013

Forex Flash: AUD/NZD bounce seen as corrective – Westpac

Westpac Bank exited their remaining half short position taken back in March 21 at 1.2560. “We entered the trade on 21 March, selling the cross at 1.2560 with a target of 1.2300,” the bank said, expanding: “On 8 April we took profit on half the position at 1.2340 and ran the balance with a trailing stop which was triggered today, taking profit on the remaining half of our short AUD/NZD position at 1.2110.”

Session Recap: RBNZ hits the spotlight; China trade surplus beats estimates

NZD/USD was heavily sold today in Asia-Pacific on RBNZ governor comments saying the central bank has been selling Kiwi dollars in past weeks, and that even could lower rates if high housing market started to ease as a threat. The pair sold off below the 0.84 handle, extending yesterday's loses.