- Aussie climbing as broader markets rally on trade headlines.
- A quiet early week for the Antipodeans sees a lacking data docket for Tuesday.
The AUD/NZD is backing into the 1.0900 handle during the early Asia trading session, after the Aussie rose against the Kiwi in Monday’s action.
The Aussie was the big gainer yesterday after markets opened the new week with a risk recovery, as the cool-down between the US and China over tariffs brought risk appetite back. The US and China have agreed to hold off on any more tariffs while they continue to negotiate on trade, and markets have taken the news as largely positive, sending risk assets higher as safe havens sunk.
Tuesday sees little action on the economic calendar, with the Aussie not seeing any important releases until the Reserve Bank of Australia’s (RBA) head, Philip Lowe, delivers a speech at 08:00 GMT Wednesday, while the NZD is also on the backburner until Wednesday at 22:45 GMT with NZ Trade Balance figures.
AUD/NZD levels to watch
The AUD is continuing to recover against the Kiwi, climbing from April’s low of 1.0488 to test the waters near the 200-day SMA, currently sitting just below at 1.0880. After facing a downturn in early May to 1.0655, the AUD/NZD is now nearing resistance at the 61.8 Fibo level of 1.0985. There is a confluence between the 200-day SMA and the 50.0 Fibonacci retracement of the pair’s major decline from 1.1290 that began in October of 2017, 1.0890 could rotate to provide support if bulls can manage to deliver enough momentum to close over the area.