AUDNZD Outlook Remains Bearish- Correction on Tap

Although we're waiting for a short-term bounce in the AUDNZD to sell the pair, the employment report out of New Zealand and Australia may produce another move to the downside should the fundamental developments coming out of the Australian economy disappoint. As the Reserve Bank of New Zealand (RBNZ) adopts a hawkish tone for monetary policy, any declines in the kiwi are likely to be limited, but the aussie remains poised to face additional headwinds over the near to medium-term as the Reserve Bank of Australia (RBA) shows a greater willingness to push the benchmark interest rate to a fresh record-low. In turn, we will maintain a bearish outlook for the AUDNZD, but the pair looks for a short-term correction in the days ahead as the relative strength index comes up against oversold territory.