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The Australian Dollar is one the top-performers this year. While the AUD/USD pair is trading in the "uncomfortably high" zone again, the RBA pledged to keep borrowing costs on hold for some time. A bunch of reports this week, including Stevens's speech, can revive speculations the easing cycle is over. Moreover, consumer sentiment is likely to disappoint, as recent budget weighed on all sectors of the economy. While domestic data continue to disappoint, ECB's easing can boost demand for the Aussie, and add even more pressure on the RBA. For now, markets can ignore weak statistics from the resource-rich economy, hence, the AUD/USD pair can climb further above, with bulls aiming weekly and daily R2 at 0.9397.
Another South-Pacific currency that is worth paying attention to this week is the Kiwi. The latest fundamentals are suggesting the economy is adjusting to a tighter monetary policy, as effect of higher interest rates are feeding through the economy. Nonetheless, during the last month's meeting, Graeme Wheeler and his deputy warned that further moves will be highly dependent on the exchange rate. Over the last several weeks NZD/USD was moving lower, until hitting a strong support at 0.84-mark. A 370-pip depreciation can only be a correction ahead of another rally. There is a rather high possibility the RBNZ will raise its official cash rate by additional 25 basis points, providing a lift to the Kiwi. Long traders should focus weekly R1 and weekly R2 at 0.8562 and 0.8634 respectively.