Forex: AUD/NZD rallies on RBNZ warnings

AUD/NZD is currently printing fresh 7-day highs at 1.2319, mostly on Kiwi weakness, following RBNZ Wheeler warning on potential currency intervention in case NZD keeps at such elevated levels. As soon as this happened NZD/USD tumbled to fresh 4-day lows at 0.8392, taking AUD/NZD higher with it, while Aussie held pretty well, and even now is pushing to the upside at session highs 1.0358.

The move comes on great timing from yesterday's ANZ call saying AUD/NZD was “ripe for a correction,” the analysts suggested. The cross is up +1% for the week so far, with most local share markets in the green, while Gold moves near fresh 6-month lows around $1605. Kiwi has turned to be the weakest currency among majors for last 2 trading days, even against Yen, coming from being one of strongest ones.

Immediate resistance to the upside for AUD/NZD comes at current levels as Feb 11 Asian session lows 1.2320, followed by Feb 11 highs at 1.2365, and Feb 07 highs at 1.2390. To the downside, nearest term support lies at yesterday's highs 1.2280, followed by Feb 14 highs at 1.2260, and Feb 06/yesterday's lows at 1.2202/1.2196.