- AUD/NZD hit session lows at 1.0663, but was rejected at lows. Bias still lower, the pair is on track to test trend line support at 1.0620.
- The pair is at the time of writing trading at 1.0719, persistent NZD weakness supporting AUD/NZD higher in Asia , New Zealand dollar in consolidation mode, having bounced 3.2 percent last week.
- Undermining sentiment and weighing on the Aussie were concerns about how much Beijing is prepared to allow its currency to fall.
- China late on Friday launched a new trade-weighted yuan exchange rate index, saying it was to discourage investors from exclusively tracking the currency's fluctuations against the greenback. Investors wary of the Chinese yuan, given its recent weakness.
- Momentum studies edge lower, 5, 10 & 20 DMAs are falling, Tenkan and Kijun show bearish crossover, a negative setup, a close Friday below 1.0710 61.8% of Nov rise targets 1.0620 76.4%.
- Initial support is seen at 1.0682 (Dec 11 lows) and immediate resistance is located at 1.0751 (Oct 22 highs).
Recommendation: Short rallies in the pair around 1.0728, SL: 1.0785, TP: 1.0620
