- Wild week for AUD/NZD with employment in New Zealand and a rate hike in Australia.
- Cross about to end the week with gains but far from the top.
- The correction could extend the next strong support at 1.0970.
The crossing AUD/NZD is about to post the highest weekly close since August 2018. The Australian dollar peaked near 1.1200 and then pulled back. It is hovering around 1.1030/40. The close away from the top adds to some signs of exhaustion, such as the daily RSI turning lower.
The ongoing pullback could continue as long as the cross remains below 1.1060. A daily close above 1.1100 should increase the odds of another test of 1.1200.
The correction found support at 1.1015. A break lower should open the doors for more losses with the 1.1000 target first and below the next support at 1.0975. If AUD/NZD hits 1.0975, a bounce seems likely, while a drop below could hurt the Australian dollar outlook.
In a long-term perspective, the 1.0750 area contains an uptrend line from the November low and the 100-day SMA.
After a volatile week, with jobs data out of New Zealand and a rate hike from the Reserve Bank of Australia, the AUD/NZD pair is likely to calm down and start moving in smaller ranges.
AUD/NZD daily chart
Technical levels
Source: Fx Street
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