NZDCAD – Back to 9000?

NZDCAD – Back to 9000?

Chart Of The Day

Overnight news that New Zealand center right has recovered its lead in the polls ahead of the national election on September 23, sent kiwi sharply higher and turned the commodity pair from a relative weakness performer to relative strength. The news that center-left held the lead for the past few weeks has weighed heavy on kiwi with markets worried that Labor would enact a series of anti-growth policies.

So the relief in the pair has been palpable and if Conservatives of the National party manage to hold on to their lead through election and hold on to power the kiwi could extend its gains. Meanwhile the loonie looks like its exhausted. USDCAD has found serious support above the 1.2000 level and that makes NZDCAD and interesting long as the pair tries to climb back towards the .9000 level.

AUD/JPY – Will It Retest 90.00?

AUD/JPY – Will It Retest 90.00?

Chart Of The Day

Fundamentals
The AUD/JPY has been in a long slow decline since the start of the year as combination of RBA rate cuts and no further accommodation from the BOJ have weighed on the pair. The market is convinced that RBA will cut rates again next week given the slowdown in the resources sector as Chinese demand wanes. However, Australia also has a burgeoning housing bubble problem and if tonight’s AU Building Approvals report sunrises to the upside with another string gain, traders my rethink their dovish thesis. Meanwhile is US data continues to surprise to the upside it will lend support through the yen side, so AUD/JPY could be in for a surprising bounce if it can hold the current 91.00 support.

Technicals
If the pair can hold ground at the 91.00 level AUD/JPY could be in the process of setting up a higher low which could propel it towards a retest of the swing highs near 94.00. A break however, could signal a move towards 90.00 as it tests the double bottom support.