AUD/NZD trading on a high note, but holiday markets bring little volume
- Mixed CPI data for the Aussie sent the pair higher anyway, but bullish momentum is beginning to look stretched.
- The bull move could form a convenient bearish continuation if key swing levels aren't broken.
The AUD/NZD pair is lifting back into yesterday's highs near 1.0690 after spiking higher in Tuesday's Asia session.
The Aussie managed to gather some momentum against the Kiwi on Tuesday, lifting from the day's low of 1.0624 and stopping short of the 1.07 handle. Australian CPI figures came out mixed yesterday, but the Kiwi was still short-changed on the data and bowed out against the AUD.
Wednesday will see a sharp decrease in volumes, as both Australia and New Zealand markets have the day off for the Anzac Memorial Day observance, but Thursday will bring Trade Balance figures for the Kiwi at 22:45 GMT.
AUD/NZD Levels to watch
Despite the pair's strong downtrend that began in October of 2017, the AUD has managed to close higher against the Kiwi for eight of the last nine consecutive trading days, and the challenge for bulls right now will be to keep the momentum going long enough to punch through the last swing high on the Daily candles near 1.0795 before the pair can challenge the 200-day SMA at 1.0873, while a bearish continuation will see support from the 50.0 Fibo level at 1.0590, with further support from the current low at 1.0490.
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.
