AUD/NZD trying to catch a break after falling back to 1.07

The Aussie is struggling to find some lift against the Kiwi.
Market sentiment is punishing the AUD, sending it lower against most risk assets.

Joshua Gibson FXStreet

The Aussie is trying to gain a foothold against the Kiwi in Tokyo trading, currently testing just above 1.0720.

The AUD/NZD pair fell steadily on Tuesday as the Australian economy continues to suffer from middling macro data releases and the Reserve Bank of Australia (RBA) left huddling on low interest rates as Australia's growth expectations lag far behind global trends.

New Zealand is stuck in a similar boat to the Aussies, with the Reserve Bank of New Zealand (RBNZ) unable to begin preparing to lift interest rates amid disappointing growth figures, yet the economic outlook for the Kiwis is markedly sunnier compared to Australia, and market-moving headwinds continue to punish the AUD and send it to the bottom of the basket.

Trump's firing of his own Secretary of State, Rex Tillerson, sent traders fleeing on Tuesday and the AUD suffered a little worse in broad markets than the NZD, sending the AUD/NZD downwards and back into March's consolidation. Wednesday will see NZD GDP figures late at 21:45 GMT, but the week's macro calendar is looking thin for both currencies and the AUD/NZD pair will continue to be led by the nose through swings in risk sentiment and overall trends will resume with the AUD on the weak side.

AUD/NZD Technicals

The pair is drifting sideways on Daily candles, and the AUD is running out of time to build a floor underneath it, with buyers losing momentum at key swing points. H4 charts show the 'sideways wobble' as a lack of changes in the underlying fundamentals traps the pair. Current support is coming from the last swing low at the 1.0700 handle and last week's low of 1.0665, with resistance at the previous swing high of 1.0750 and the 34-day EMA, currently sitting at 1.0780.

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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