AUD/NZD sitting just above 1.1500 ahead of the RBNZ
The AUD is back towards the lower end of recent ranges against most of the other majors, after Chinese PMI again fuelled the bears appetites. There have been many reports over the last few days of very solid support in AUD/NZD near 1.1500, but it’s possible that these orders might cancel ahead of the RBNZ? A clean break below 1.1500 would open the way for a move to 1.1200. If support holds, look for a sharp short-covering rally towards 1.1700.
AUD/USD finally stalled overnight near .9135 but a clean break below there would open the way for another 100 pip fall (see chart).
Keep a close eye on AUD/NZD; if 1.1500 holds then we can try buying AUD/USD intraday looking for a 100 pip rally. BUT, if support in the cross breaks and AUD/USD breaches .9130, then put on your rally-selling cap.
Elsewhere, EUR/AUD needs close watching as well as we are back trading at 1.4400.