The cross is now quoted up 0.4% on the day at 1.2570 after testing offers through 1.2575, and is now encountering resistance at the ascending trend line drawn from the trough of the week of Oct 4, 2009 to that of July 11, 2010. Further advances may encounter resistance at 1.2596 (Sep 18 low), 1.2637 (38.2%, 1.3077/1.2368) and 1.2665 (50-day EMA). If price reverses gains, the 1.2540 level offers immediate support, then 1.2525.
"In the short time the AUDNZD is pretty much dancing on the spot ... but if we step into the helicopter and have a good look at the set up – fundamentally and technically we get a picture of a cross that is building momentum for a topside move," comments Greg McKenna, Chief Executive at Lighthouse Securities.
Next event risk for the pair is AUD-focused, with RBA minutes due out at 00:30 GMT; markets expect a dovish tone.