AUDNZD Sees a Possible Reversal After Hitting a Major Support Level

AUDNZD remains one of the highlights this week. Pitting the two against each may give some good short term opportunities for these risk on currencies.

Fundamentals of NZD and AUD

It’s important to note that the RBNZ has held the currency lower this month because the increase in value put immense pressure on the exports. Due to that, the RBNZ preferred to keep the price low to balance the economy. At the same time, the RBA stated that the AUD’s price levels are not a problem so far. They don’t really see a problem with its short term appreciation.

Technical Outlook

1.06085 is the level to look at right now. The price is playing around this support level and may go down further before it can experience a bounce. But if it does decide to go lower, then the next level to look out for is 1.04722. So far, the overall trend is still bearish so it is still hard to see whether a reversal is going to be in place or not. The reversal may depend more on the fundamentals this time.

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