- AUD/NZD sees brief spike post-NY, fading in Tokyo.
- Long-term bearish trend still at play.
AUD/NZD gained at the start of the overnight session but Tokyo trading is bringing the pair back down, with thin volumes leaving AUD/NZD testing around 1.0730.
Business PMIs for New Zealand came out at a forecast-beating 55.6 today, and Governor Philip Lowe of the Reserve Bank of Australia spoke before the Australian parliament's Standing Committee on Economics, reiterating the RBA's easy monetary policy stance, with the central bank holding off on rate increases until well into next year as economic data for the continent continues to middle. While both of these events had little impact on overall market activity, they are indicative of AUD/NZD's for the past three and a half months: economic growth in Australia continues to lag, and the Aussie Dollar will continue to suffer against the New Zealand Dollar because of it. Thursday saw the pair trade at a six-month low, and with little data left on this week's docket, overall market sentiment will continue to drive the closely-linked currency pair.
AUD/NZD Technicals
The pair has been steadily declining since the high of 1.1290 reached in October of 2017. Momentum has been restrained and progress halting, but the Aussie continues to give up major support levels to the Kiwi as the weeks roll by. Intraday support-resistance can be found at 1.0747 and 1.0709 respectively, and today's action will be capped by yesterday's high of 1.0770 and low of 1.0704. Long-term, AUD/NZD is trading down below the 200-day SMA, which will now act as resistance at 1.0843, and the 34 EMA is close to crossing below the same indicator, a bearish signal.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.