AUD/NZD closes in on the 200-day moving average

Offers on the cross has been helping to keep the kiwi bid on the day. And the pair remains near the lows as we head into European trading. From a technical perspective, the pair formed a double-top pattern at the highs @ 1.0993 on Friday and has since moved lower.

Today's rise in the NZ core inflation measure is helping to accelerate the move to the downside as it would seem. Right now, the pair looks to close in on a test of the 200-day MA (blue line) @ 1.0865 and the 11 December low @ 1.0864.

The confluence of support levels there is key for buyers to hold to maintain the upside momentum, but given the double-top pattern the technical picture isn't looking too good. Beyond the two levels mentioned, further support is only seen at 1.0835 and the 50.0 retracement level @ 1.0826.

If that gives way, we're heading back for a retest of the 100-day MA (red line) @ 1.0756.

The issue for the pair is that there is a distinct lack of catalysts so something like the data earlier today is a key driver of sentiment. And that could reverberate for a couple more sessions at least.

I've always liked to take the technical aspect of AUD/NZD as the more important factor these days, and so far - like gold - the pair has been respecting key technical levels very well indeed. If you're going to be looking for more gains in the NZD today, make sure to keep an eye on the 200-day MA above. So far, that is the line in the sand stopping the kiwi from running away today. - along with key levels in NZD/USD at the same time.