Since reaching a high of 1.0816 on June 11, the AUD/NZD has been steadily declining.
The cross is hovering on a multi-month support level, with weakness persisting below 1.0670.
Momentum oscillators show a pessimistic underlying attitude.
In Thursday’s Asian session, the AUD/NZD pares some of its previous day’s losses. Following the Reserve Bank of Australia Governor Philip Lowe’s statement that a viral outbreak and protracted lockdowns made economic recovery questionable, the couple is struggling. Before 2024, inflation is not likely to reach the central bank’s goal range.
The AUD/NZD currency pair is currently trading at 1.0675, up 0.11 percent on the day.
The AUD/NZD pair has been trading below the 50-day Simple Moving Average (SMA) near 1.0750 on the daily chart since June 30.
A prolonged move below the intraday low will bring more weakness to the pair, which is still under pressure.
The first lower target is found at the 1.0645 horizontal support level as a result of this.
With a bearish crossover, the Moving Average Convergence Divergence (MACD) indicator trades below the midline. Any drop in the MACD would hasten the selloff toward the May 27 low of 1.0599.
Bears in the AUD/NZD would then go for the February 4 low of 1.0564.
Alternatively, if price rises, it will retest the 1.0697 high from the previous day.
Furthermore, a break above the 50% Fibonacci retracement line, which runs from the low of 1.0599 to the high of 1.0730, would urge bulls to test the high of July 6 at 1.0730.
The 1.0750 horizontal resistance level will be watched closely by market participants./n
