AUD/NZD drops to 10-day low of 1.0765

The AUD/NZD cross dropped to a 10-day low of 1.0765 in Asia as the Aussie remains on a weak footing amid a sell-off in copper and iron ore prices.

Nears weekly 100-MA

The pair is trading within a striking distance from the weekly 100-MA level of 1.0756.  The Kiwi dollar was relatively resilient amid the broad based USD rally post Fed decision mainly due to upbeat New Zealand labor market report released in Wednesday morning in Asia. 

Meanwhile, a 3.5% drop in the Comex copper prices yesterday and a 6.9% drop in the Dalian iron ore futures today led to sharp losses in the AUD/USD pair. The narrowing of the Aussie trade surplus and a weaker-than-expected China services PMI didn’t help the matters either.

AUD/NZD Technical Levels

A break below 1.0756 (weekly 100-MA) would open up downside towards 1.07 (last week’s low) and 1.0668 (10-DMA). On the other hand, a break above 1.0791 (session high) could yield a rally to 1.0842 (5-DMA) and 1.0873 (Apr 26 high).