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Aussie touches four year low vs kiwi

Posted by WorldWideMarkets . on May 29, 2013 2:57:00 AM
kiwi 50 resized 600The aussie hovering near a four year low against the kiwi, a clear vote of confidence on the New Zealand economy vs the Australian. But the two economies and nations are so closely intertwined its perhaps one more call on the aussie than anything else. Technically, the aussie has been pushing out the lower 20-day simple bollinger band since April 4 and things are still looking weak. It is also below it's 14-, 50-, 100- and 200-day simple moving averages. The 14-day exponential relative strength index around 30 with the aussie oversold against the kiwi or close to it since April 4. With the commodities cycle in Australia getting old and the RBA more likely to ease than not even as the RBNZ is see as raising rates next year, expect more weakness in the Australian unit against the New Zealand. RBA meets June 4, RBNZ meets June 13. Specs more than doubled their short aussie positions in the latest week to 32,409 contract from 13, 450. In the Kiwi, specs cut longs to 17,782 from 23,216 contracts.
 

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