Antipodean Rally: What’s Driving the Kiwi and Aussie?
Market Overview
The antipodean currencies (AUD and NZD) have been on a substantial rally, largely propelled by the Kiwi’s breakout and a resilient Aussie. This surge comes hand-in-hand with fluctuations in Chinese cyclical markets, making U.S. trade relations a critical factor for traders to watch.
Key Points
- Kiwi hits fresh YTD highs while Aussie's uptrend features minor resistance.
- There’s a strong correlation between these currencies and markets linked to China, including commodities like copper.
- U.S. trade policy sentiment will remain a pivotal driver in the near term.
Summary of Recent Movements
The latest sessions in Asia have displayed a remarkable buying spree in the NZD/USD and AUD/USD pairs. Since Asia comes online, these pairs often see significant action. Notably, the Kiwi has been garnering strong demand lately, reinforcing its bullish outlook.
Technical Analysis
Both currencies show signs of substantial bullish momentum, with AUD/USD currently eyeing key resistance at .6415, while NZD/USD has cleared important levels above the 200-day moving average.
Key Levels to Watch
AUD/USD: Key uptrend resistance: .6415.
NZD/USD: Targeting levels above .5929 with potential for .6053.
Future Outlook
As we proceed further, the relationship to Chinese market fluctuations continues to be a significant nuance for traders. Furthermore, the potential impacts from evolving U.S. trade policies could serve as either hurdles or catalysts for continued rallies.
Opinion & Analysis
With the current momentum indicating a potential uptrend for both antipodean currencies, traders should keep a keen eye on both technical indicators and external factors like geopolitical climate shifts. The closeness of these currencies to commodity plays linked to China means that complacency could lead to surprising market reversals.
Stay ahead in your trading strategy by continuously monitoring these developments and adapting your approach based on the fresh insights from market analysts, like [David Scutt](https://www.forex.com/en/news-and-analysis/forex-com-analysts/david-scutt/), who provide actionable perspectives on these movements.