AUD/NZD: bears taking control below 1.10, cross continues to drop in early Asia

• AUD/NZD dumps below the 1.10 handle.
• AUD/NZD eyes on 1.0820.

AUD/NZD has dumped from 1.1080 down to 1.0981 so far with little explanation. The kiwi has been the top performer in the commodity bloc, taking full advantage of the mixed dollar outlook at the start of this week.

Forex today: dollar fights back in NY

Overnight, AUD/USD rose to 0.7645 in London before reversing to 0.7605 in NY  while NZD/USD rose from 0.6860 to 0.6926 and remained above 0.6900. As a result, AUD/NZD fell 0.6% over the day to 1.1010 and has now broken below 15th Nov previous lows and to the lowest levels since 18th October. 

NZD/USD to stay bid?

For the Kiwi, the technicals remain are bullish with the RSIs biased up and so long as the pair holds above the 10 & 21-DSMAs, the cross should remain offered in the near term, especially considering there are no data releases to change the direction of the tide here.

AUD/NZD levels

The price is now below the 50-D SMA at 1.1033 while testing 1.0980 support. Critically, the upside trend from 1.0820 formed on the 20th Sep correction was broken recently and the price is penetrating deeper below that trend line with a view on 1.0820 as next key target to the downside. 1.0890 is the 15th Oct low.