- RBNZ's dovish tilt dominated the commodity bloc, weighing on the outlook for the bird.
- Data from New Zealand showed NZ Business PMI dipped from previous 57.8 to 56.8 in May.
- AUD/NZD saw sharp reversal from fresh 10-week lows at 1.0610 to hit highs of 1.0779.
- The pair is extending upside on the day and is hovering around 20-DMA at 1.0775.
- Close above 20-DMA will see test of next immediate resistance at 1.0833 (50-DMA).
- Technical indicators on the daily charts have turned bullish. RSI and Stochs have rolled over from oversold levels and biased higher.
Support levels - 1.0775 (20-DMA), 1.0720 38.2% Fib of 1.0237 to 1.1018 rise), 1.0683 (100-DMA)
Resistance levels - 1.0834 (50-DMA & 23.6% Fib), 1.09 (trendline), 1.0935 (May 1 high)
TIME TREND INDEX OB/OS INDEX
1H Bullish Neutral
4H Bullish Neutral
1D Bullish Neutral
1W Bullish Neutral
Recommendation: Good to go long on dips around 1.0775, SL: 1.0720, TP: 1.08/ 1.0835/ 1.09
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 164.291 (Bullish), while Hourly NZD Spot Index was at -60.4837 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
