In our original posting we proposed the notion of a range bound AUDNZD. Our idea called for a short-order slightly below the range top with a target just above range support. Before being filled, the Aussie Dollar sold-off on warnings from RBA Governor Glenn Stevens that Australian households have become “much more cautions” about their borrowing and spending habits. But then Wednesday saw RBNZ Governor Alan Bollard surprise markets by cutting rates by 50bp as opposed to the expected 25bp. Traders quickly sold the Kiwi on the news to bring AUDNZD within three pips of our proposed limit entry price of 1.2323. There is still room for the entry to be filled as the stochastic oscillator continues to be bullish on the pair.
Written By Luis Gil, DailyFX.com
E-mail: lgil@fxcm.com
