AUD/NZD: Recovery from 6-week low stalls at 5-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The AUD/NZD cross extends its recovery mode from six-week lows and finds fresh bids near hourly 20-SMA located at 1.0644, as the Kiwi corrects lower after the recent upsurge.

    AUD/NZD capped below 5-DMA at 1.0676

    The AUD/NZD cross halted its losing streak and staged a solid comeback from a brief dip below 1.06 handle, mainly driven by extension of losses in the NZD/USD pair after the Fonterra’s dairy auction results showed that the prices edged slightly higher by 1.9%, although showed a small decline from the previous 3.6% rise. While markets ignored the upbeat NZ current account data which showed that the current account deficit to GDP ratio was the lowest since the Q4 2014.

    On the other hand, the Aussie jumped back on the bids and flirts with 0.72 barrier, as the bulls remains supported after RBA minutes revealed upbeat outlook on the Australian economy. Meanwhile, the main focus for the day remains the Fed decision, which is likely to have major impact on the USD, eventually influencing both the Antipodes.

    AUD/NZD Technical Levels

    To the upside, the next resistance is located at 1.0676/81 (5-DMA/ 1h 50-SMA) levels and above which it could extend gains to 1.0722 (1h 100-SMA). To the downside immediate support might be located at 1.0600 (round number) below that at 1.0566 (Nov 3 Low).
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