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FxWirePro: AUD/NZD spikes as dovish RBNZ weighs on kiwi, upside rejected at 20-DMA

  • NZD slumped across the board, emerges the worst performer on the day on RBNZ’s dovish stance. 
     
  • AUD/NZD spikes to hit weekly highs at 1.0777, but further gains likely only on break above 20-DMA.
     
  • Upside likely rejected at 20-DMA resistance at 1.0775, the pair has pared some gains to currently trade at 1.0745 levels.
     
  • Technical studies still bearish, we do not see major signs of reversal.
     
  • Rollover of Stochs from oversold levels with decisive close above 20-DMA could see reversal in trend.

Support levels - 1.0684 (5-DMA), 1.0610 (May 10 low), 1.0595 (200-DMA)

Resistance levels - 1.0775 (20-DMA), 1.08, 1.0847 (Apr 13 high)

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -24.1443 (Neutral), while Hourly NZD Spot Index was at 3.37209 (Neutral) at 0720 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
 

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