AUD/NZD - correction gathers pace on the dismal Australia capex report
|The technical correction in the AUD/NZD gathered pace following the release of a dismal forward looking Australia private capital expenditure number.
The currency pair dropped from 1.0713 to 1.0662 levels as the 10-year Aussie bond yield extended losses to 2.80%.
Sharp retreat from the high of 1.0748 on Wednesday suggested the bullish move from the January 31 low of 1.0326 could have run out of steam. Thus, the cross already traded on the back foot at around 1.0713 levels before the dismal Aussie capex report hit the wires.
At the time of writing, the pair was trading around 1.0670 levels. This is the first time since February 8 that the pair is trading below the 10-DMA level.
AUD/NZD Technical Levels
Breach of strong support at 1.0634 (Feb 16 low) could yield a sell-off to 1.0572 (Jan 11 high) under which the losses could be extended to 1.0537 (50% fib of 1.0326-1.0748). On the other hand, a break above 1.0692 (5-DMA) would shift risk in favor of a re-test of 1.0722, where a violation would expose yesterday’s high of 1.0748.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.