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AUD/NZD fails near Thursday’s high and retreats

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 21, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The New Zealand dollar remains pressured against its OZ neighbour in the mid-Asian trades, as the drop in dairy prices at the recent Fonterra’s auction refuels RBNZ rate cut bets next week.

    AUD/NZD capped by 10-DMA

    Currently, the AUD/NZD pair trades 0.13 higher at 1.0766, retreating from 1.0781 session highs. The AUD/NZD cross met fresh supply at 10-DMA located at 1.0780 and trimmed gains as the New Zealand dollar appears to recoup partial losses after the recent GDT prices index-induced weakness.

    The GDT index fell 3.1% versus a 9.9% rise in the previous fortnight, while whole-milk powder - the most crucial commodity for New Zealand - tumbled 4.6% to $2,694.

    While the Aussie remains underpinned by the latest RBA minutes which sounded upbeat on the Australian economic prospects, also noting that the AUD level is supporting the economic re-balancing.

    Looking ahead, markets will continue to the digest the latest fundamentals surrounding both Antipodes while focus now shifts towards Thursday’s Aus NAB Quarterly business confidence numbers.

    AUD/NZD Technical Levels

    To the upside, the next resistance is located at 1.0781/1.0790 (Today’s + Oct 15 High) levels and above which it could extend gains to 1.0819 (200-DMA). To the downside immediate support might be located at 1.0732/21 (h1 20-SMA + daily pivot) below that at 1.0697 (h1 100 SMA) levels.
    For more information, read our latest forex news.
     

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