- AUD/NZD took a sharp turn lower, from multi-week highs at 1.0845 hit on Thursday's trade.
- The pair failed to close above 1.08 levels and price action has fallen back into daily cloud.
- Aussie slumps across the board on dovish RBA Deputy Governor Debelle's comments.
- Debelle said that a rising AUD is complicating the economy's adjustment and is not welcome.
- While the Kiwi caught a fresh bid-wave on NZ FinMin Joyce’s comments, despite risk-off market profile.
- NZ FM said that the 8.9% appreciation in the New Zealand dollar over the last months reflects the strong New Zealand economy.
- The pair now finds strong support at 200-DMA at 1.0610. We see weakness to extend on break below.
- Oscillators are on verge of rollover from overbought levels, completion of which will add to downside bias.
Support levels - 1.0610 (200-DMA), 1.06, 1.0543 (50-DMA), 1.0523 (23.6% Fib retrace of 1.10188 to 1.03706 fall)
Resistance levels - 1.0662 (cloud top), 1.07, 1.0771 (61.8% Fib)
Recommendation: Good to go short on break below 1.0610, SL: 1.0670, TP: 1.0545/ 1.0525/ 1.05
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 0.547473 (Neutral), while Hourly NZD Spot Index was at 132.74 (Bullish) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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