AUD/NZD – Above 5-DMA, corrective move underway

AUD is once again gaining an upper hand over the high yielding NZD, thus ensuring the AUD/NZD cross trades above 5-DMA level of 1.0432.

Hovers around Aug 2 low

At the time of writing, the pair was trading around Aug 2 low of 1.0436 levels. The losing streak in the cross that began on Aug 9 finally ran out of steam at a low of 1.0393 on Aug 25. However, the subsequent jump to 1.0436 lacked fundamental trigger and appears largely a chart driven move.

The main even for the day is Yellen’s Jackson Hole speech. NZD being a relatively high yielding currency could score gains over Aussie in case Yellen comes out dovish.

AUD/NZD Technical Levels

A break above Asian session high of 1.044 could yield a move higher to 1.0476 (23.6% of 1.0743-1.0393). On the lower side, a breach of yesterday’s low of 1.0393 would open doors for a fresh sell-off to 1.0312 (July 8 low).