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FxWirePro: AUD/NZD pauses downside at 50-DMA, successive Doji formations dent downside

AUD/NZD chart - Trading View 

Spot Analysis:

AUD/NZD was trading 0.04% lower on the day at 1.0434 at around 06:10 GMT.

Previous Week's High/ Low: 1.0611/ 1.0476

Previous Session's High/ Low: 1.0464/ 1.0417

Fundamental Overview:

Antipodeans withdrew sharply overnight from multi-month peaks after the Reserve Bank of Australia (RBA) stepped in to defend its yield target. 

The RBA offered to buy A$1 billion of its targeted April 2024 government bond, pulling the yield back down to 0.14%, after it had strayed as high as 0.21% - against a target of 0.1%.

Commodity prices cooled and as a sharp sell-off in Antipodean bond markets eased, the antipodeans cooled from red hot levels. 

Technical Analysis:

- Price action grinds sideways between 21-EMA and 50-DMA 

- Back-to-back Doji formations on the daily charts suggests indecision

- Momentum is bearish, RSI is below the 50 mark

Major Support and Resistance Levels:

Support - 1.0422 (50-DMA), Resistance - 1.0461 (21-EMA)

Summary: AUD/NZD is likely to extend sideways as price action remains capped between major moving averages. Breakout will provide a clear directional bias. 

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