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AUD/NZD backing down as the Aussie continues to drift against the Kiwi

5/30/2018, 10:46:32 AMTrading Strategies
AUD/NZD backing down as the Aussie continues to drift against the Kiwi

The AUD/NZD is trading back into 1.0850 in early Asia trading as the Aussie falls against its closest neighbor.

The Aussie's downturn against the Kiwi is pressing for further lows today, as sellers look to push the AUD off of its technical recovery against the NZD. 

Australian Building Permit figures today helped knock the AUD lower, with the headline figure coming in at a worse-than-expected contraction of -5.0%, steeper than the forecast -3.0% compared to the previous reading of 2.6%. In New Zealand, a speech from the Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr revealed little new information for traders. The RBNZ has been forced to stick to the middle lately as an economic slump for the archipelagic economy has seen interest rate hike expectations collapse, and the central bank is expected to stand pat on rates well into 2020.

AUD/NZD technicals

With the Aussie continuing to step lower against the Kiwi on the Daily candles, the next step for sellers will be to push the pair below 1.0725, the 50.0 Fibo level of the AUD's correction from the bottom at 1.0488 in April, while the 61.8 Fibo level remains near 1.0670. Resistance is limited for the pair, though the recent top at 1.0960 will give buyers a challenge, while the long-term bearish trend could see further resistance nearby at 1.0985.