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  • The bias in AUD/NZD continues to favor the downside.
  • Key short-term support at 1.0600 keeps losses limited for the moment.

The AUD/NZD dropped sharply after the RBNZ hawkish meeting, breaking key technical levels. The downside found support at 1.0600 and then rebounded modestly to 1.0670.

The bias still points to the downside. Consolidation may continue ahead while another test of 1.0600 is expected. A break lower would target the 1.0560 area and below 1.0520. Technical indicators show mixed signs. The RSI is turning to the upside while momentum suggests more losses are likely.

As long as AUD/NZD remains under 1.0760, the outlook would be negative. Before the mentioned level, a strong barrier is located at 1.0715/20. That scenario is not favored at the moment. Any rebound reaching levels under 1.0750 could be seen as an idea for a potential sell.

AUD/NZD daily chart

AUDNZD