FxWirePro: AUD/NZD recovery rejected at cloud base, slips below trendline support at 1.0645, bias lower

• Aussie edged higher post-China CPI data supporting AUD/NZD higher.
   
• Recovery in the pair was rejected at cloud base and the pair has slipped below trendline support at 1.0645.
   
• Bias remains lower, the pair is on track to test 200-DMA at 1.0593.  Violation there will see further drag.
   
• Housing market concerns and the weakness in the commodity prices likely to keep downside pressure on the Aussie.
   
• RBNZ policy meet on Wednesday in focus for further impetus. The central bank is largely expected to stay pat with a hawkish tone.

Support levels - 1.0616 (Feb 28 low), 1.0593 (200-DMA), 1.0590 (61.8% Fib)

Resistance levels - 1.0672 (cloud base), 1.0693 (5-DMA), 1.07, 1.0754 (38.2% Fib)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-NZD-on-track-to-test-200-DMA-at-10593-good-to-short-rallies-688266) is progressing well.

Recommendation: Hold for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -12.3169 (Neutral), while Hourly NZD Spot Index was at 174.514 (Bullish) at 0920 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.