by Chris Becker
Not a good night for Australian dollar bulls with the Pacific Peso kicked down below 69 cents against the USD in what at first glance looks like a technical move:
The risk proxy AUDNZD pair was also hit hard, moving to a new monthly low, surpassing the July 2019 terminus:
Looking at the longer term charts of the Kiwi cross is shows something is brewing, with the course set for a six year low, but moreover indicating that the February RBA meeting is firming for another rate cut.
The interest rate market is now signalling a near 60% chance of the RBA cutting from its current 0.75% and heading below 0.5% in February, as the macro data continues to deteriorate even before the impact of the current and future bushfire season is taken into account.
Watch out below!