AUD/NZD: bulls holding the corrective support line for now

• AUDNZD has been creeping high in a reversal of the prior sell-off from 1.0995 on the 8th October, recovering from 1.0767.
• The pair has climbed as the Aussie plays catch up with the Kiwi that had otherwise been wearing the brunt of the concerns over trade wars.  

AUD/USD has in fact recently broken up through the descending channel’s resistance line and took out a number of 4hr SMAs and pierced the 21-D SMA which is key. However, the Aussie remains in the broader daily channel and still has a great deal of work to do on the upside. Looking at the Kiwi, it too has been in the bid and also broke the 21-D SMA with a flight or two of breaking the key downside daily resistance line.  

Aussie CPI coming up

“Kiwi and Aussie were both in favour and this cross meandered overnight. We see this cross lower in time, but it may not be this week. Australian CPI is out today and the details may be soft,” analysts at ANZ Bank New Zealand explained.  

AUD/NZD levels

AUD/NZD is stabilising in the corrective channel but remains under water while below the 21-D SMA at 1.0881. On the 4-hr charts, the pair is creeping towards the pivot that meets the 4hr 21-SMA where a break there will open 1.0884 and R2 at 1.0914 thereafter. To the downside, a break of the support line opens 1.0791 at S1 and 1.0715 S3.