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16 Dec 2013
AUD/NZD continuing to get crushed despite oversold condition; resistance to sell into 1.0950
FXstreet.com (Barcelona) - The weakness in AUD/NZD continues to highlight the relative weakness in the Aussie Dollar versus the Kiwi. Data later this week could either provide impetus for a bounce or just add fuel to the downside fire.
AUD/NZD likely stuck in downtrend until data forces a change
The AUD/NZD has been in a strong downtrend since late October and is likely to stay in that trend unless and until data out of Australia or New Zealand forces traders to change their stance. Major data points this week for the pair include:
• Aussie Leading Indicators on Tuesday
• RBA’s Debelle gives a speech on Tuesday
• RBA Meeting Minutes released on Tuesday
• Aussie Westpac Leading Index on Wednesday
• New Zealand’s Current Account on Wednesday
• New Zealand Business Confidence on Wednesday
• New Zealand GDP on Thursday
• RBA’s Bulletin on Thursday
Technical outlook for AUD/NZD
Technicians say the AUD/NZD broke below the 161.8% Fibonacci price projection line at 1.0950 last week. The ultimate downside target now becomes 1.0560 – the 261.8% projection line. Resistance at which technicians say the cross can be sold starts at the 12/9 low at 1.0950 and is backed up by the 12/11 peak at 1.1048.
AUD/NZD likely stuck in downtrend until data forces a change
The AUD/NZD has been in a strong downtrend since late October and is likely to stay in that trend unless and until data out of Australia or New Zealand forces traders to change their stance. Major data points this week for the pair include:
• Aussie Leading Indicators on Tuesday
• RBA’s Debelle gives a speech on Tuesday
• RBA Meeting Minutes released on Tuesday
• Aussie Westpac Leading Index on Wednesday
• New Zealand’s Current Account on Wednesday
• New Zealand Business Confidence on Wednesday
• New Zealand GDP on Thursday
• RBA’s Bulletin on Thursday
Technical outlook for AUD/NZD
Technicians say the AUD/NZD broke below the 161.8% Fibonacci price projection line at 1.0950 last week. The ultimate downside target now becomes 1.0560 – the 261.8% projection line. Resistance at which technicians say the cross can be sold starts at the 12/9 low at 1.0950 and is backed up by the 12/11 peak at 1.1048.