AUD/NZD revisits previous session’s low of 1.0645

AUD/NZD cross revisited the previous session’s low of 1.0645 after New Zealand reported April trade surplus at 2-year high and the ratings agency Moody’s downgraded China’s rating.

The Aussie dollar weakened somewhat after the news hit the wires that Moody’s has downgraded China’s long-term local currency and foreign currency issuer ratings to A1 from Aa3 and changed the outlook to Stable from Negative. Moreover, the losses in the Aussie were miniscule as Moody’s downgrade is merely a ‘catch up’ job with the rival agency Fitch.

Meanwhile, stats NZ released the trade data earlier today which showed More dairy, wood, and wine exports in April 2017 led to a goods trade surplus of $578 million; the highest since 2015. However, the upbeat NZ trade data didn’t necessarily lead to strong gains in the Kiwi.

Consequently, the pair has managed to hold above the previous day’s low of 1.0645. The cross was last seen trading around 1.0650.

AUD/NZD Technical Levels

A break below 1.06 (200-DMA + zero levels) would open up downside towards 1.0572 (Jan 11 high) and 1.0530 (Feb 3 high). On the higher side, breach of resistance at 1.0668 (session high) would expose 1.0708 (100-DMA) and 1.0732 (10-DMA).