19 Sep 2013
AUD/NZD violates support; dives to 1.1307, 4-week lows
FXstreet.com (Chicago) - AUD/NZD continues plunging ahead of Tokyo’s opening and after the release of better than expected NZ GDP data.
Data releases – Weaker Aussie
GDP data in NZ triggered a positive reaction for the kiwi as the currency strengthened across the board. At 0.2%, results outperformed 0.1% expectations (MoM) despite “sharp falls in agricultural production, falls in mining and offsetting movements in other components”. In Australia, the Aussie weakened the most against the USD (relative performance) and retreated 0.42% against the kiwi. Ahead of RBA bulletin results and the RBA foreign exchange transactions in Australia, market participants extend selling activity.
AUD/NZD Technical Levels – bearish scenario
Price action reveals the violation of an upward trendline that originated last July 30th. The pair failed to support 1.1380 levels and dipped below the 1.1320 zone to register 1.1307 lows. Printing lower lows, the bearish channel consolidates losses. Offered at 1.1317, the pair fluctuates below supports aligned at 1.1280 (August 15th lows), 1.1239 (August 1st lows) ahead of 1.1198 (July 30th lows) and resistances set at 1.1327 (August 8th lows), 1.1380 (August 16th highs) followed by 1.1428 (September 16th highs). Reported as slightly bearish on one-hour timeframe analysis by the FXstreet.com trend index, the pair is sold below the EMA20.
Data releases – Weaker Aussie
GDP data in NZ triggered a positive reaction for the kiwi as the currency strengthened across the board. At 0.2%, results outperformed 0.1% expectations (MoM) despite “sharp falls in agricultural production, falls in mining and offsetting movements in other components”. In Australia, the Aussie weakened the most against the USD (relative performance) and retreated 0.42% against the kiwi. Ahead of RBA bulletin results and the RBA foreign exchange transactions in Australia, market participants extend selling activity.
AUD/NZD Technical Levels – bearish scenario
Price action reveals the violation of an upward trendline that originated last July 30th. The pair failed to support 1.1380 levels and dipped below the 1.1320 zone to register 1.1307 lows. Printing lower lows, the bearish channel consolidates losses. Offered at 1.1317, the pair fluctuates below supports aligned at 1.1280 (August 15th lows), 1.1239 (August 1st lows) ahead of 1.1198 (July 30th lows) and resistances set at 1.1327 (August 8th lows), 1.1380 (August 16th highs) followed by 1.1428 (September 16th highs). Reported as slightly bearish on one-hour timeframe analysis by the FXstreet.com trend index, the pair is sold below the EMA20.