AUD/NZD spikes to close New York, drifts lower in Tokyo to 1.0730
|- AUD/NZD sees brief spike post-NY, fading in Tokyo.
- Long-term bearish trend still at play.
AUD/NZD gained at the start of the overnight session but Tokyo trading is bringing the pair back down, with thin volumes leaving AUD/NZD testing around 1.0730.
Business PMIs for New Zealand came out at a forecast-beating 55.6 today, and Governor Philip Lowe of the Reserve Bank of Australia spoke before the Australian parliament's Standing Committee on Economics, reiterating the RBA's easy monetary policy stance, with the central bank holding off on rate increases until well into next year as economic data for the continent continues to middle. While both of these events had little impact on overall market activity, they are indicative of AUD/NZD's for the past three and a half months: economic growth in Australia continues to lag, and the Aussie Dollar will continue to suffer against the New Zealand Dollar because of it. Thursday saw the pair trade at a six-month low, and with little data left on this week's docket, overall market sentiment will continue to drive the closely-linked currency pair.
AUD/NZD Technicals
The pair has been steadily declining since the high of 1.1290 reached in October of 2017. Momentum has been restrained and progress halting, but the Aussie continues to give up major support levels to the Kiwi as the weeks roll by. Intraday support-resistance can be found at 1.0747 and 1.0709 respectively, and today's action will be capped by yesterday's high of 1.0770 and low of 1.0704. Long-term, AUD/NZD is trading down below the 200-day SMA, which will now act as resistance at 1.0843, and the 34 EMA is close to crossing below the same indicator, a bearish signal.
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