AUD/NZD struggling to hold onto the 1.0900 handle as the Kiwi wriggles

Aussie bumping higher against the Kiwi in the overnight session.
Slumping figures for the NZ economy has the NZD on the defensive.

Joshua Gibson FXStreet

The AUD/NZD is sticking near Tuesday's high, trading just beneath the 1.0900 major level as the Aussie pushes against the Kiwi steadily.

The pair tripped lower in Tuesday's European markets, but the AUD recovered through the American session, and the pair has washed on Tuesday's action, trading near where it started. The Kiwi has struggled to develop much confidence with a lagging Reserve Bank of New Zealand being cramped by sluggish growth, and expectations of any rate hikes from NZ are being pushed out in some cases into 2019.

Wednesday is a quiet affair for the AUD/NZD, with Australian Wage Prices at 01:30 GMT (forecast 0.6%, prev. 0.6%) and Credit Card Spending for the NZD (previous 7.2%). Neither figure will be particularly earth-shattering for either currency.

AUD/NZD levels to watch

The pair is still holding just above the 200-day SMA for now, reaching into new three-month highs, and the pair looks geared to make a recapture of the 1.0900 handle to challenge January's highs near 1.1070, though a bearish correction from here could see thew pair fall back under a long-term trendline from October 2017's high at 1.1290, and little support remains nearby, with the 50-day EMA at 1.0700, with May's low nearby at 1.0650.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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