AUD/NZD trades on recovery mode; now testing daily highs at 1.0575

FXStreet (San Francisco) - The Australian dollar is trading in recovery mode against its New Zealand counterpart as the pair is advancing for the first time in three days. After bouncing off 1.0520, the AUD/NZD is now testing daily highs at 1.0575.

Earlier in the day, the Westpac leading index posted a 0.1% decline in November but an upward revision to 0.1% positive from unchanged in October. So somewhat positive data. On the other hand, New Zealand reported a decline of 2.6% in the GDP ratio current account in the Q3.

Currently, AUD/NZD is trading at 1.0567, up 0.17% on the day, having posted a daily high at 1.0571 and low at 1.0523. The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is slightly bullish.

AUD/NZD sentiment

The Reserve Bank of Australia reiterates that they want more stimulus for the economy, however the central bank expects this stimulus coming from a lower Australian Dollar rather than another kind of movement such as a interest rate cut.

Above 1.0570, the pair will find resistances at 1.0575, 1.0590 and 1.0600. To the downside, supports are at 1.0550, 1.0525 and 1.0500.