- Kiwi under pressure amid new COVID-19 cases in New Zealand, ahead of RBNZ.
- AUD/NZD testing level above critical medium-term resistance at 1.0850.
The AUD/NZD pair is trading above a long-term resistance located around the 1.0850 area. It traded above several times last year and back in June but it failed to consolidate above. It is trading back above, with technical supporting more gains. However, volatile events ahead, like the RBNZ meeting, could trigger unexpected moves.
A daily close above 1.0850 would suggest more gains ahead targeting 1.0910 and above 1.0955. A weekly close cleary above 1.0850 would point to another leg higher over the medium term.
If over the next sessions, AUD/NZD retreats below 1.0810 it would have failed again to break the key resistance, and should drop further to test 1.0750/60 (uptrend line and horizontal level). A break below 1.0750, should weaken the aussie further.
AUD/NZD daily chart