AUDNZD - READY FOR A REVERSAL?

Oct 10

Symbol - AUDNZD

CMP - 1.14180

AUDNZD continues to maintain its upward trajectory, supported by fundamental divergence between the two economies. The Australian dollar remains resilient and continues to outperform the New Zealand dollar after the RBNZ implemented an aggressive 50 basis point rate cut, lowering the official cash rate to 2.5% - the lowest level in over three years. The central bank also signaled a willingness to ease further as the domestic economy continues to struggle.

Despite this fundamental backdrop favoring the Australian dollar, the currency pair is showing signs of exhaustion in its bullish momentum and now appears poised for a corrective phase. Selling pressure is becoming evident at higher levels, and if this activity intensifies, AUDNZD could transition into a deeper correction in the near term.

Resistance levels: 1.1430, 1.1455, 1.1472
Support levels: 1.1387, 1.1350

While the overall trend remains upward, the near-term bias has turned bearish as momentum wanes. However, if buyers manage to defend key support levels and regain control, a renewed cycle of bullish momentum may emerge - potentially extending toward higher resistance levels before a broader reversal unfolds.

Oct 10

Trade closed: target reached

CMP 1.1328

Both targets reached.