SYDNEY: The Australian and New Zealand dollars were trying to sustain a rally on Tuesday as speculators took some profits on short positions and Australia’s central bank signalled another rate hike was on the cards for June.
The Aussie clambered up to $0.6996 and away from a two-year trough of $0.6829 touched last week. Resistance now lies at $0.7030 and $0.7055.
The kiwi firmed to $0.6327, having bounced from $0.6229 support overnight. Still, a break above $0.6400 was needed to improve the bearish technical background.
The fact the currencies could rally at all, considering Monday’s dire economic data from China, suggested both were oversold and due a break from selling.
“While tentative, AUD/USD may be finding a base as market participants digest the news that the Chinese economy will be weak until the lockdowns ease,” said Joseph Capurso, head of international economics at CBA.
Comments
Comments are closed.