AUD Versus NZD: Some Fundamental thoughts
AUD and NZD are diverging fundamentally and economically.
New Zealand:
New Zealand's CPI is expected to weaken and labor market projections are expected to tighten. They are not expected to even consider raising rates until the second half of next year.
Australia
Australia:
According to Business Insider and other news outlets and the RBA itself, the RBA appears confident that the Australian economy will grow "faster in 2018 than in 2017;" that is, approximately 3%. Retail sales boded well and are stong. Inflation is 1.9%, yet still below their 2% target, like most central banks. The RBA kept its rates the same: 1.5%. They will observe the inflation and wage situation a little bit longer in order to determine whether or not to raise rates. Some news outlets say November 2018 will be another decision point.
Data coming in April 17 and 18, 2018 are New Zealand's milk prices and their CPI. I do not know what it will be. Maybe any good news will throw off this trade. Australia's CPI comes in next week. The sentiment seems like players are positioning long AUD and short NZD at key levels of support.
Looking at the weekly chart, AUDNZD has hit some support. I am in.
New Zealand:
New Zealand's CPI is expected to weaken and labor market projections are expected to tighten. They are not expected to even consider raising rates until the second half of next year.
Australia
Australia:
According to Business Insider and other news outlets and the RBA itself, the RBA appears confident that the Australian economy will grow "faster in 2018 than in 2017;" that is, approximately 3%. Retail sales boded well and are stong. Inflation is 1.9%, yet still below their 2% target, like most central banks. The RBA kept its rates the same: 1.5%. They will observe the inflation and wage situation a little bit longer in order to determine whether or not to raise rates. Some news outlets say November 2018 will be another decision point.
Data coming in April 17 and 18, 2018 are New Zealand's milk prices and their CPI. I do not know what it will be. Maybe any good news will throw off this trade. Australia's CPI comes in next week. The sentiment seems like players are positioning long AUD and short NZD at key levels of support.
Looking at the weekly chart, AUDNZD has hit some support. I am in.
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Kommentera:
Kommentera:
Artlcle above that I wrote makes observation in AUD's Inflation & Wages & Beyond Technical Analysis.
Capturing the swings of the stock market & currency market. It's a dirty job and equity/currency traders must do it.