#AUDNZD @ 1.05898 stays defensive at the lowest levels since late January 2022. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• AUD/NZD stays defensive at the lowest levels since late January 2022.
• Fresh challenges to sentiment, RBA versus RBNZ divergence challenge the buyers.
• RBA braces for 0.25% rate hike but the future guidance will be crucial for clear directions.

The pair currently trades last at 1.05898.

The previous day high was 1.0658 while the previous day low was 1.0598. The daily 38.2% Fib levels comes at 1.0621, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0635, expected to provide resistance.

AUD/NZD drops to a fresh low since late January as bears poke 1.0590 mark while waiting for the Reserve Bank of Australia’s (RBA) Interest Rate Decisions during early Tuesday. In doing so, the cross-currency pair reverses the previous day’s corrective bounce amid a broad-based pullback in the Australia Dollar (AUD) amid mixed sentiment.

Fresh fears emanating from Russia join the market’s doubts over the US Federal Reserve’s (Fed) next moves seemed to have recently weighed on the AUD/NZD bears. Also favoring the pair sellers could be the dovish expectations from the RBA, as well as hopes of more rate hikes from the Reserve Bank of New Zealand (RBNZ).

The New York Times (NYT) released a piece of news suggesting Ukrainian drones attacked military bases hundreds of miles inside Russia and escalated war fears. The news joins recent hawkish expectations from the Fed and the RBNZ, backed by firmer economics, as well as dovish bias surrounding the RBA to keep the AUD/NZD bears hopeful.

That said, the RBA is expected to announce a 0.25% rate hike and may signal the end of hawkish moves, which becomes more of interest to the market players of late. However, RBA Governor Philip Lowe recently stated that the central bank’s decision to downshift reflects monetary policy lags. The same challenges the AUD/NZD sellers amid recently strong Aussie inflation numbers.

On Monday, Australia’s AiG Performance of Construction Index for November rose to 48.2 versus 43.3 whereas S&P Global Services PMI rose more than 47.2 initial forecasts to 47.6 while the Composite PMI also improved to 48.0 versus 47.7 prior. Further, TD Securities Inflation for November jumped to 5.9% YoY and 1.0% MoM compared to 5.2% and 0.4% respective priors.

Looking forward, the RBA Rate Statement will be more important than the Interest Rate Decision and should be observed for clear directions.

A clear downside break of the 14-month-old horizontal support area surrounding 1.0610-15 directs AUD/NZD bears towards an upward-sloping support line from September 2021, close to 1.0580 at the latest.

Technical Levels: Supports and Resistances

AUDNZD currently trading at 1.0597 at the time of writing. Pair opened at 1.06 and is trading with a change of -0.03% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.0836, 50 SMA 1.1031, 100 SMA @ 1.1095 and 200 SMA @ 1.1017.

The previous day high was 1.0658 while the previous day low was 1.0598. The daily 38.2% Fib levels comes at 1.0621, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0635, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.058, 1.0559, 1.052
• Pivot resistance is noted at 1.064, 1.0679, 1.0699

[/s2If]
Join Our Telegram Group