AUD/NZD snaps four-day winning streak

AUD/NZD cross has put an end to four-day winning streak in Asia, even though the data released today showed New Zealand trade deficit widened to record high in September.

Offered at 1.07

The cross was offered at 1.074 in early Asia and was last seen trading around 1.0680 levels. On a slightly bigger timeframe, the retreat from 1.07 marks an extension of the drop from previous session’s high of 1.0757.

The drop seen today contradicts macro data release in New Zealand, which showed trade deficit expanded to $1.44 billion in September, from $1.14 billion a year earlier. Exports dropped 5.7%, while imports dropped 1.8%.

 AUD/NZD Technical Levels

Break below immediate support at 1.0656 (Oct 14 low) would open doors for 1.06 (zero figure) where a violation would open up downside towards 1.0563 (38.2% of 1.0237-1.0765). On the higher side, breach of resistance at 1.07 would expose 1.0736 (Oct 12 high) and 1.0765 (Oct 14 high).