Friday, November 20, 2015

AUD/NZD: Minor recovery capped by 1.0945

FXStreet (Mumbai) - The renewed strength seen in the New Zealand dollar following the upbeat spending data, continues to weigh on its PZ neighbour lower, keeping AUD/NZD supressed near 1.0925-30 region.

AUD/NZD making lower tops on daily sticks

The AUD/NZD cross bounced-off Tuesday’s lows and now re-attempts 5-DMA, before supply capping the minor recovery near hourly 5-SMA at 1.0945. The cross remains heavy mainly on the back of strengthening NZD/USD, as the NZD bulls cheer upbeat domestic credit card spending data. The NZ credit card spending was up 7.8% y/y in Oct, against a 7.3% rise in seen in Sept.

However, the downside remains cushioned as the Australian dollar is seen posting mild gains versus its American counterpart, amid broad based US dollar rebound and lack of fresh economic news this session.

The economic calendar is absolutely dry for the cross in the day ahead, hence, the prices could take fresh cues from the sentiment on the equities and also the performance in the commodity space.

AUD/NZD Technical Levels

To the upside, the next resistance is located at 1.10 (round number) levels and above which it could extend gains to 1.0131 (Nov 17 High). To the downside immediate support might be located at 1.0900 (psychological levels) below that at 1.0874 (200-DMA).
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