AUD & NZD at 2022 highs

AUD and NZD at 2022 highs 
Powell continues the Hawkish tilt

The Antipodean pair move higher, reaching their highest price for 2022 on Tuesday, when the AUDUSD and NZDUSD recorded encouraging gains in daily trading. The positive factors of the market climate and the willingness of investors to take risks clearly support the rise of these commodity currencies. Although the latest statement from Fed Chairman Jerome Powell on Monday, which appeared more aggressive than his statement to the FOMC media last week, supported the temporary strengthening of the Dollar, investors’ willingness to take risks clearly prevailed in the market as prices rose in the US stock market.

The NZDUSD rose sharply, managing to close above the daily MA-200 level for the first time since October 2021. In addition, it also recorded a daily high for 2022 at 0.6960 supported by an upward momentum from last week. The 50% retracement Fib level of 2021-2022 high-low swing at 0.6996 and the psychological level 0.7000 have become the closest resistance levels while the fib level 61.8% at 0.7106 will be an important point if the upward momentum continues to be maintained. For a downward movement, the psychological level 0.6900 (also close to the MA-200) is the nearest support level. The RSI-14 momentum is starting to approach the over-bought zone and the movement of the MACD histogram and the MACD line shows an upward trend. There is no significant data from New Zealand this week.

Meanwhile, the AUDUSD reached its high of 2022 at 0.7464; similar to the NZD, it showed relatively strong upward momentum supported by the positive market climate. 0.7500 is now the nearest uptrend and this level is also close to 50% fib (0.7487). AUDUSD has been trading successfully above the MA-200 since last Friday and the MA-200 level is now a significant support for the fall followed by the MA-50 confluence zone and the 23.6% fib at 0.7200-0.7212 is the next support. The RSI-14 momentum for AUDUSD is also starting to approach the supermarket zone and the movement of the MACD histogram and the MACD line shows an upward trend.

What is interesting is that the AUD and the NZD are now starting to move unaffected by geopolitical factors from last week and this indicates that it is starting to show a movement of “disconnection” from the Russian-Ukrainian situation.

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Tunku Ishak Al-Irsyad

Market Analyst

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