AUD/NZD testing the 1.1600 barrier

FXstreet.com (New York) - The AUD/NZD technical cross has lost its grip on the 1.1600 level Tuesday morning, suffering from a weakness at the opening and a strengthening NZD across the board during Asian trading.

AUD/NZD event risk

Inflation was just as subdued as expected over the June quarter, with the strong New Zealand dollar helping to hold down prices for internationally-traded goods. According to Imre Speizer at Westpac, “The details hinted at some threats to the Reserve Bank’s benign assumptions about future inflation, but nothing that would prompt a change to its firmly on-hold message in Thursday’s OCR review.”

AUD/NZD technical bias

At the time of writing, the AUD/NZD is trading negatively, down -0.04% as it tests the 1.1600 level (200-day SMA) Tuesday. In terms of the technical levels, AUD/NZD is slated to encounter calculated support should the cross fall to 1.1571 (July 22 low), ahead of 1.1549 (July 19 low).

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