- Aussie drops sharply across the board on RBA rate cut expectations.
- AUD/NZD finds support around 1.0700 and rebounds to 1.0740.
The AUD/NZD is falling for the fifth consecutive day. It accelerated during the Asian session on the back of rising expectation about rate cuts from the Reserve Bank of Australia (RBA). It fell to low as 1.0700, the lowest since late July.
The area around 1.0700 capped the downside. A firm break lower would clear the way to more losses, with an immediate target at 1.0665 and then 1.0645. A daily close below 1.0730 would likely lead to another test of 1.0700.
After falling during five days in a row, AUD/NZD is starting to look exhausted to the downside. If the current bounce remains above 1.0740, a recovery of the Aussie seems likely. The next strong resistance stands at 1.0770.
AUD/NZD daily chart
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