- AUD/NZD down 0.60% on the day at the time of writing as Aussie dented post-RBA minutes.
- RBA minutes released this Tuesday morning took note of the rising household debt and weakness in consumption and labor market.
- Minutes reiterated the dangers of a strong Aussie dollar and talked about a slow pick in the core inflation.
- The pair has broken below major support by 50-DMA at 1.0797 to hit 7-week lows at 1.07426.
- Downside finds strong support at 1.0740 (trendline). Break below to see further drag.
- On the flipside, close above 50-DMA will invalidate our bearish call.
Support levels - 1.0740 (trendline), 1.0726 (cloud top), 1.0698 (March 2 low)
Resistance levels - 1.0797 (50-DMA), 1.08, 1.0855 (23.6% Fib retrace of 1.0326 to 1.1018 rally)
TIME TREND INDEX OB/OS INDEX
1H Bearish Neutral
4H Bearish Neutral
1D Bearish Neutral
1W Bearish Neutral
Recommendation: Good to go short on break below 1.0740, SL: 1.08, TP: 1.07/ 1.0675/ 1.0615
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -145.427 (Bearish), while Hourly NZD Spot Index was at 95.3122 (Bullish) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
