• FxWirePro: AUD/NZD slumps over 0.75 pct, intraday bias turns bearish, stay short on break below 200-dma

    Source: FxWire Pro - Technicals / 17 Jul 2018 07:33:33   America/New_York

    • AUD/NZD has dived on the day, trades over 0.75% lower on the day.
       
    • Aussie holds moderate losses after dovish RBA minutes, intraday bias neutral.
       
    • RBA minutes released earlier today showed the policymakers do not see a strong case for a near-term move in interest rates.
       
    • Policy makers said household debt risk, slow wage growth and downside risks to the global economy from trade tensions, suggest that the interest rates will likely stay at a record low of 1.5 percent for some time.
       
    • On the otherside, Kiwi was buoyed after RBNZ’s preferred measure of core inflation hit a 7-year high.
       
    • Data released earlier today showed NZ Q2 CPI data that arrived at 0.4% and slightly lower than the 0.5% expected.
       
    • But, later the RBNZ’s preferred measure of core inflation for the second quarter printed at a 7-year high of 1.7% year-on-year pushing the antipodean higher.
       
    • Intraday bias for the pair has turned bearish after rejection at trendline resistance.
       
    • We see weakness to accentuate on break below 200-DMA. Scope then for test of cloud base at 1.0725.

    Support levels - 1.0861 (200-DMA) 1.0848 (50-DMA), 1.0777 (May 31, June 1 low)

    Resistance levels - 1.0921 (5-DMA), 1.0970 (trendline), 1.0992 (July 3 high)

    Recommendation: Stay short on break below 200-DMA, SL: 1.0925, TP: 1.08/ 1.0780

    FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -46.8281 (Neutral), while Hourly NZD Spot Index was at 71.6618 (Neutral) at 1115 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
     

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