NZDCAD feeling the pressure of OPEC

NZDCAD feeling the pressure of OPEC

NZDCAD is feeling the strain following OPEC’s meeting. Higher Oil remains supportive of the Canadian Dollar and caused NZDCAD to sink to a 6-week low yesterday after breaking 0.9426 support. The cross has since recovered above this key support level but near-term price action suggests we may embark upon another leg lower. With both Brent and WTI breaking above the $50 a barrel level with ease and near-term momentum suggesting further gains, downside pressures remain for NZDCAD and a move towards 0.931 could be on the cards.

AUDNZD continues to confuse. As the past 5 weeks have produced opposite directions at the close, we can safely say the markets remain undecided to the direction of the next major move. 1.041 is a key support level and whilst we remain below the 1.05 handle then we assume a downside break is more likely. However, until we see more diverging theme occur between RBA and RBNZ then our guess is it will continue to move in a volatile, sideways pattern until we head into next year.

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