12 Dec 2013
AUD/NZD breaks into new 5-yr low below 1.09
FXstreet.com (Bali) - AUD/NZD has hit yet another technical milestone after breaking through 1.09, setting a new 5-year low.
While the Australian jobs report came strong enough, market participants perceived the upbeat data as the perfect excuse to sell AUD at better prices, with leveraged accounts rotating the initial 30 pips odd bounce in the AUD amid the lack of demand to absorb solid offers. Earlier on, the RBNZ released a hawkish statement on its 2.5% hold decision on rates, helping the buys of NZ Dollars.
AUD/NZD technicals
Technically, the AUD/NZD is in 'free-fall' mode, and while it has clearly entered oversold conditions, it is never advisable to try and catch a falling knife, as is the case of the AUD/NZD at present. Next big level of support does not come until 1.06, which creates an interesting open space potentially to be exploited by relentless sellers. On the upside, first major resistance comes at 1.12 or thereabouts, last major line in the sand broken on Nov22.
While the Australian jobs report came strong enough, market participants perceived the upbeat data as the perfect excuse to sell AUD at better prices, with leveraged accounts rotating the initial 30 pips odd bounce in the AUD amid the lack of demand to absorb solid offers. Earlier on, the RBNZ released a hawkish statement on its 2.5% hold decision on rates, helping the buys of NZ Dollars.
AUD/NZD technicals
Technically, the AUD/NZD is in 'free-fall' mode, and while it has clearly entered oversold conditions, it is never advisable to try and catch a falling knife, as is the case of the AUD/NZD at present. Next big level of support does not come until 1.06, which creates an interesting open space potentially to be exploited by relentless sellers. On the upside, first major resistance comes at 1.12 or thereabouts, last major line in the sand broken on Nov22.