AUDNZD: Curve Analysis (3D)

TECHNICALLY:

The market is displaying a combination of signals. Although certain indicators point towards potential overbought conditions and selling pressure, most oscillators are showing a neutral stance. This discrepancy in indicators could indicate a phase of market consolidation or uncertainty, with the possibility of a significant move in either direction. Additional analysis, taking into account various technical indicators and fundamental factors, would be required to ascertain the potential future direction of the AUDNZD.

According to the moving average data for AUDNZD, there is a clear bullish bias. The alignment of most moving averages indicates a possible uptrend. Nevertheless, it's worth mentioning that the Hull Moving Average (HMA) is currently suggesting a sell signal. This could imply the presence of short-term resistance or a potential pullback. In general, the prevailing optimistic sentiment from the other indicators may overshadow this one negative signal, but it is important for traders to exercise caution and closely observe the movement of prices.

The Australian and New Zealand dollars hovered close to their lowest levels in months on Tuesday as investors eagerly awaited crucial local inflation data and a series of central bank meetings overseas that are expected to have a significant impact on the market. The Australian dollar dropped to $0.6535 against the US dollar, slightly above the lowest point it reached last week at $0.65105. The support level is located around $0.6455, while the resistance level is at $0.6595. The value of the New Zealand dollar appeared to be at risk, as it reached a level of $0.5870 against the US dollar. This is very close to its lowest point in April, which was $0.5853. A potential price break could lead to a target level of $0.5774, last observed in October 2023.

FUNDAMENTALLY:

The markets are anticipating the release of a significant report on Australian inflation on Wednesday. The findings of this report could have a significant impact on the possibility of another interest rate hike by the Reserve Bank of Australia (RBA). Projections indicate a modest increase of 1.0% in both headline consumer prices and core inflation during the second quarter. This would lead to a 3.8% annual CPI and 4.0% core inflation. That would exceed the RBA's target band of 2-3% and could lead to a closely contested decision at the central bank's upcoming policy meeting on Aug. 6. According to market indicators, there is currently a 22% probability of a quarter-point rate hike next week. However, the chances of a rate cut are minimal until at least April.