NZD: Up Modestly Post Q4 GDP Beat, AUD/NZD TO Fresh YTD Lows

AUDUSD rose 0.1% to 0.6359 but traded in a narrow range following Monday’s APAC session. It found some support from a weaker US dollar (USD BBDXY -0.1%) and stronger European equities (the US was closed). The RBA decision is announced today and it is widely expected by markets and analysts to cut rates 25bp to 4.1%.

• With AUDUSD trading above key short-term resistance at 0.6331, the bull trend has been reinforced and a stronger reversal highlighted. However, moving average studies remain in a bear-mode position. Initial support is at 0.6303, 50-day EMA, while resistance is at 0.6384, 13 December high.
• The yen outperformed on Monday leaving AUDJPY down 0.4% to 96.32 after a recent low of 96.20.
• AUDNZD is slightly lower at 1.1082. It exceeded 1.11 a number of times but couldn’t sustain the move. The RBNZ is expected to cut rates 50bp on Wednesday.
• AUDGBP fell 0.2% to 0.5036 after an intraday trough of 0.5030. In contrast, AUDEUR rose 0.2% to 0.6066 after reaching a high of 0.6080.
• Equities were stronger with Euro stoxx up 0.5% and the DAX +1.3%. Oil prices were higher with Brent rising 0.8% to $75.32/bbl. Copper is down 1.5% and iron ore is around $105/t.
• See MNI RBA Preview here.