AUD/NZD fades spike to the magical figure of 1.10

A dismal Aussie employment report has played a spoil sport this Thursday morning. AUD/NZD looked set to breach 1.10 handle before Aussie data weakened the bid tone around the AUD. 

This resulted in a short lived retreat to 1.0931 levels. The cross was last seen trading around 1.0950 levels. 

The NZD side of the story is not impressive either. The data released earlier today showed New Zealand’s economy grew less than economists forecast last quarter and at the slowest pace since mid-2015. 

Thus, gauging the next move in the pair is difficult, given the weak data releases on both sides and broad based USD weakness.

AUD/NZD Technical Levels

The cross has rallied from 1.0326 (Jan 31 low) to 1.0997 (session high). Thus, the daily RSI is overbought, suggesting a potential for correction. 5-DMA at 1.0929 could offer support, which if breached could yield 1.0893 (10-DMA) and 1.0862 (Mar 13 low). On the other hand, a daily close above 1.10 (zero figure) would open up upside towards 1.1038 (100% Fib expansion level) and 1.11 (zero figure).