AUDNZD tests a key resistance zone after the RBNZ magnifies a NZD sell-off


Best analysis

It’s been a massive day for the kiwi, with the commodity currency dropping around 2% against the USD in just two hours this morning. Latter in the session NZDUSD regained some lost ground after data showed that the RBNZ didn’t intervene to weaken the kiwi last month. The bank sold net NZD30m last month, after selling a massive NZD521m in August – the biggest amount since July 2007.

Meanwhile, the Australian dollar has been moving with investor sentiment which is focused on the USD at the moment after last night’s policy meeting at the FOMC. The USD strength has pushed AUDUSD to a support zone around 0.8760 and we aren’t ruling out further declines.

AUDNZD techs

The recent weakness in NZD has pushed AUDNZD to a key long-term resistance zone around 1.1300. A break here would be a significant bullish development in our opinion as there is still plenty of room for more upward momentum. The pair may find some more resistance around 1.1315 but there’s not much stopping it from reaching 1.1600, at least from a technical perspective. On the downside, we’re watching the pair’s 100-day SMA.

Source: FOREX.com

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