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AUD/NZD: a sell on rallies below 200 DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 15, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - AUD/NZD dumped on the back of the poor Aussie jobs data and made lows of 1.0679 before finding a bid there and back onto the 1.07 handle.

    The employment change was a decline 5,100 jobs decline vs expected 5.0k. The unemployment rate was 6.2% vs 6.35 expected while the 64.9% participation rate was virtually in line with expectations of 65%.

    This leaves the Aussie exposed to the downside while China continues to weigh on the currency as well. NAB just recently reported that the growth in China had been overestimated in 2014 that does not bode well for the outlook, all of which can be read about here. However, for both the Kiwi and Aussie, the saving grace might come in the fact that the market is pricing out a rate hike from the Fed in 2015, which can be read about here.

    AUD/NZD outlook bearish

    AUD/NZD has an RSI now of 38 on the hourly chart, recovering from close to oversold territory. The pivot is way higher at 1.0925 and MA's on the same time frame keep a lid on any recoveries within the broader downtrend from the middle of Sep business, capped at 1.1340. significantly, the price has penetrated the 200 DMA at 1.0758 and while trading below here, the outlook remains bearish.
    For more information, read our latest forex news.
     

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