Inflation Symphony: Harmonizing AUDNZD's Dance with RBNZ

23 ม.ค.

In today's trading session, our attention is on AUDNZD, with a keen interest in a buying opportunity around the 1.07900 zone. Having broken out of a downtrend, the pair is currently in a correction phase, edging closer to the retrace area at 1.07800 support and resistance. A potential target could be the monthly resistance at 1.08700.

Now, delving into the fundamental landscape, we turn to the upcoming Consumer Price Index (CPI) release by the Reserve Bank of New Zealand (RBNZ) on January 23rd. Let's examine the recent CPI data to gauge potential implications. In the previous releases, we observe a trend of declining inflation:

Oct 16, 2023: 1.8%
Jul 18, 2023: 1.1%
Apr 19, 2023: 1.2%
Jan 24, 2023: 1.4%
Oct 17, 2022: 2.2%
Comparing these figures, there is a consistent downward trajectory in inflation. The expected CPI on January 23rd is 0.5%, indicating a potential continuation of subdued inflation.

These numbers suggest a dovish outlook for the RBNZ, as persistently low inflation may prompt policymakers to maintain or adopt an accommodative stance. This, in turn, could impact the New Zealand Dollar (NZD), potentially weakening it.

As traders evaluate this AUDNZD opportunity, it's essential to consider both technical and fundamental aspects for a comprehensive perspective.

Trade safe, Joe.