- AUD/NZD extends upside after break above 200-DMA, bias higher.
- Price action has broken above daily cloud and we see scope for test of trendline at 1.075.
- Narrowing of the NZ-US yield spread after Trump's comments on tax concessions is weighing heavily over the Kiwi.
- RBNZ assistant governor and chief economist McDermott talked down the domestic currency.
- Reserve Bank of New Zealand's Governor Wheeler said cash rate likely to stay low.
Support levels - 1.0594 (session low), 1.0555 (cloud top), 1.0525 (200-DMA)
Resistance levels - 1.0641 (session high), 1.0670 (78.6% Fib), 1.07, 1.0750 (trendline)
TIME TREND INDEX OB/OS INDEX
1H Bullish Neutral
4H Bullish Overbought
1D Bullish Neutral
1W Bullish Neutral
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-NZD-spikes-above-200-DMA-to-hit-multi-week-highs-at-10596-good-to-go-long-on-dips-531430) has hit TP1 .
Recommendation: We recommend holding for upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 104.588(Bearish), while Hourly NZD Spot Index was at -64.9251 (Neutral) at 0940 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
