AUD/NZD slammed below 1.0700 to 3-month low

Bears tightened their grip on the AUD/NZD cross, which has now fallen to its lowest level since Feb. to currently trade near the low point of the day at 1.0655.

The pair suffered from the negative sentiment surrounding the Australian Dollar, which continues to slide after disappointing labor market report. Earlier on Thursday, data showed the number of employed people during April rose by 10.8k, falling short of expected addition of 12.1k and 25.7k rise in March.

Further, although the minutes from RBA's latest monetary policy meeting revealed that the central bank might be more inclined to wait for further information before deciding to ease further, concerns over Chinese economic slowdown continues to weigh on the Australian Dollar.

Moreover, sharp recovery witnessed in the NZD/USD pair from an important 100-day SMA support added to the ongoing downbeat sentiment around the AUD/NZD pair. With daily RSI still holding above near-term oversold conditions, the ongoing downward momentum seems to suggest further downside for the pair.

Technical levels to watch

From current levels, traders would be eyeing 1.0600 handle to extend some immediate support for the cross. Failure to hold this immediate support would bring 2016 lows support near 1.0650 back in sight.

Meanwhile on the upside, 1.0700 handle now seems to obstruct any attempts of recovery. Beyond 1.0700 level the pair might extend the recovery towards 1.0800 level, which now seems to cap any further near-term recovery for the pair.