AUD/NZD drops sharply from fresh half-yearly highs

By FXStreet The NZD recovered ground and jumped into the bids against its OZ neighbour in the European session, knocking-off AUD/NZD closer towards 1.12 handle.

AUD/NZD slips below daily pivot at 1.1254

Currently, the AUD/NZD pair trades -0.20% at 1.1227, retreating slightly from fresh session lows of 1.1216. The cross in the AUD/NZD is seen reversing a part of the RBNZ rate cut- induced upward rally, and now dives deeper in the red as the Kiwi turns positive against the US dollar.

Further, the downside in the cross can be also attributed to the renewed weakness in the Aussie as markets shrugged off upbeat Chinese CPI figures and track the sentiment around oil markets. Earlier on the day, the cross rallied to 1.1284 after the bird was smashed following a surprise rate cut announcement by RBNZ.

AUD/NZD Levels to watch

The pair finds the immediate resistance at 1.1284/1.1300 (daily high/ round number) above which gains could be extended to the 1.1350 (daily R1). On the flip side, the immediate support located at 1.1178/68 (1h 20-SMA/ daily pivot). Selling pressure is likely to intensify below the last, dragging the Aussie to 1.1100 (psychological levels).
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Source:: FX Street