- AUD/NZD rejected at highs, upside fails below major trendline resistance at 1.0765.
- Aussie slips against major peers as Australia’s private capital expenditure data fails to meet expectations.
- Australia’s Q4 capital expenditure printed at -2.1 % missing forecast at -0.4 % vs previous -3.3 %.
- Australia’s Q4 building capex also decreased to -4.1 % vs previous -3.6 %, while plant/machinery capex increased to 0.4 % vs previous -3 %.
- Shooting star formation evidenced on dailies. RSI shows retracement from near overbought levels.
- Momentum is fading and Stochs are on verge of bearish rollover from overbought levels.
- The pair has slipped below 5-DMA and we see scope for test of 20-DMA at 1.0567.
Support levels - 1.0660 (session low), 1.0655 (38.2% Fib retrace of 1.1333 to 1.0237 fall), 1.06
Resistance levels - 1.0695 (5-DMA), 1.07, 1.0765 (trendline), 1.0785 (50% Fib)
TIME TREND INDEX OB/OS INDEX
1H Bullish Neutral
4H Bearish Neutral
1D Neutral Neutral
1W Bullish Neutral
Recommendation: We will wait for further confirmation on technicals to go short.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -25.4045(Neutral), while Hourly NZD Spot Index was at 145.676 (Highly bullish) at 0200 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
