AUD/NZD Forecast & Technical Analysis
Australia – Cash Rate
On Tuesday, at GMT 4:30 a.m., the Reserve Bank of Australia (RBA) will release the official cash rate. It is the interest rate that major Australian banks and financial institutions pay to borrow funds held at the RBA.
Short-term interest rates are the primary factor in the valuation of the Australian Dollar against other major currencies. So, High low binary traders pay close attention to any changes in the official cash rate.
The RBA left the cash rate at 1.5% in their last meeting. The forecast for this month is that the RBA will reduce the cash rate to 1.25%.
New Zealand – Official Cash Rate
On Wednesday, at GMT 2:00 a.m., the Reserve Bank of New Zealand will release the Official Cash Rate. It is the interest rate that banks in New Zealand use to lend funds held at the central bank.
Binary options investors consider the official cash rate to be the most important factor of the valuation of the New Zealand Dollar against other currencies. In fact, most of the other fundamental indicators are considered just to predict future interest rate.
Last month, the RBNZ left the official cash rate at 1.75%. The forecast for this month is that the rate would remain the same at 1.75%.
AUD/NZD Forecast
The AUD/NZD broke below the uptrend line on April 24, 2019. Over the last two weeks, it fell by around 130 pips. However, the support level near 1.0530 kept it from falling lower earlier on Monday.
The official cash rate of New Zealand will likely to remain the same as last month, at 1.75%. On the other hand, analysts are expecting the Reserve Bank of Australia to lower its cash rate to 1.25%. We believe it would set a bearish fundamental outlook for the AUD/NZD this week. Therefore, if the AUD/NZD closes below the support near 1.0530, it would likely attract additional bearish momentum in the market.
Hence, highlow binary options traders should look out for trading opportunities below this major support level around 1.0530.
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