- The Kiwi is winning the race to the bottom between the AUD and the NZD.
- The week starts off light for the pair before employment data for Australia, NZD government budget.
The AUD/NZD continues to recover steadily, and the pair kicks off the new week trading near 1.0840.
The Aussie has been developing some legs against the Kiwi with the Reserve Bank of New Zealand set to stand pat on interest rates well into 2020. The NZD has weakened heavily as economic data for New Zealand’s economy continues to crumble, and the Aussie has gained over 3% against the NZD since April’s low.
This week is set to bring a dose of volatility for the Antipodeans, with New Zealand’s newest government budget releases on Thursday, as well as Australian employment figures. The early week is a quiet affair though, and the first meaningful event will be Meeting Minutes from the Reserve Bank of Australia (RBA) Tuesday at 01:30 GMT.
AUD/NZD levels to consider
The AUD’s recovery against the NZD sees the pair challenging the 200-day SMA at 1.0875, and a bullish continuation will have to face descending resistance from early 2018’s trendline from October’s high of 1.1290, and a bearish breakdown will see support from the 50.0 Fibo level at 1.0660.
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