Aussie received a boost yesterday to a $0.8821 high following a buoyant China Q4 GDP reading. This morning, aussie-dollar continued to rise, beating Monday’s high to trade $0.8838 but also running into resistance from a stronger New Zealand dollar today. The kiwi had risen this morning after higher-than-expected CPI sparked talk of an impending RBNZ rate hike. The aussie failed to benefit from that as aussie-kiwi was pressured to a low of NZ$1.0569 earlier, triggering stops below NZ$1.0590 before recovering a little to be last at NZ$1.0594. Aussie-dollar meanwhile was dragged down to a $0.8800 low but rebounded after that, triggering some stops above $0.8830. Aussie-dollar backed away again after offers appeared near the high, driving the pair down again to $0.8816, and was last at $0.8822. Looking ahead, more sellers have been mentioned at $0.8850, with stops then noted on a break above $0.8855, according to market sources. There’s also been some talk of further selling at $0.8865/70, these believed to be fairly large, with more cited toward $0.8900.
