AUD/NZD testing critical support

By FXStreet AUD/NZD is testing the descending support from yesterday’s extension of the start of the week’s downtrend from 1.0670 on the back of a decent trade balance for January in New Zealand.

The price has been genuinely resisted overnight at the 1hr 20 sma at 1.0768 currently, but the bears have struggled much below 1.0750. That data might just be the catalyst as Asia gets going to see the Aussie off vs the bird for a target of 1.0720.

AUD/NZD losing out to NZ’s trade balance

The headline was $-3.58b vs $-3.840b exp but, slightly higher than $-3.549b prior y/y Jan although the m/m was a good result up $8m vs -$271m expected. Exports on the other hand were not as good as prior, but beat expectations for Jan, so the kiwi is bid and outperforming vs the Aussie. Eyes will remain firmly on China for any signs of further growth that could hinder continued export growth to the nation as NZ’s number one buyer over Australia.

AUD/NZD levels

Technically, AUD/NZD is under pressure below the 200 and 100 sma’s on the hourly sticks converging around 1.0795 and is in a heavy downtrend from above 1.0850 this week. The 4hr 200 sma has been an …read more

Source:: FX Street