AUD/NZD recovers to 1.0450 on fresh NZD selling

The Australian dollar is seen trimming losses against its OZ neighbour in mid-Asia, pushing AUD/NZD back towards the mid-point of 1.04 handle.

AUD/NZD recovers as NZD turns negative

The AUD/NZD pair now drops -0.14 to 1.0446, recovering slightly from session lows struck at 1.0415 pre-Tokyo open. The bears loosened grip on the AUD/NZD cross as the Kiwi pair failed to resist above 0.71 handle and back in the red as oil prices meet fresh supply.

While on the AUD-side, the major extends its correction for the second day in a row as lower Aus bond yields tumble and weighs on the Aussie amid broad based US dollar weakness.

Greg Gibbs, the founder of Amplifying Global FX Capital, noted, “The AUD/NZD has dropped abruptly to below 1.05, and may be causing a number of players to capitulate on bets the cross would rally as the gap between their economic growth rates and interest rates had narrowed significantly over the last year.”

AUD/NZD Technical Levels

To the upside, the next resistance is located at 1.0571 (5-DMA) and above which it could extend gains to at 1.0649 (20-DMA).To the downside immediate support might be located 1.0410 (multi-month low) below that at 1.0378 (daily S1).