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    IronFX Intraday Comment | AUD/NZD | 06/10/2015

    • The dollar traded unchanged or lower against most of its G10 peers during the European morning Tuesday, in the absence of any major market moving events. It was lower against EUR, NOK and CHF, in that order, while it remained stable vs CAD, AUD, SEK, GBP and JPY. The greenback was slightly higher against NZD.
    • The Australian dollar gave back some of its gains made following the RBA decision, but remained strong. The Bank kept interest rates unchanged and quelled speculation of further rate cuts, at least this year. The Aussie has been under increased selling pressure recently, mainly due to concerns of a slowdown in China and the low commodity prices. But the statement from the Australian central bank showed less concerns of the softening in conditions in China, which reversed some of the negative sentiment towards AUD. Nevertheless, I would prefer to play AUD strength vs NZD, as the Reserve Bank of New Zealand is more likely to cut rates further to boost its economy.
    • AUD/NZD traded higher during the European morning Tuesday after it hit support near 1.0885 (S1), the lower bound of the sideways range it’s been trading recently. Currently, the rate looks to be headed for another test at the 1.0975 (R1) resistance barrier, where an upside break is likely to open the way for the next obstacle at 1.1030 (R2). Our short-term oscillators support the case for further advances. The RSI edged higher and just poked its nose above its trigger line, while the MACD, although negative, has bottomed and crossed above its trigger line. There is also positive divergence between both these indicators and the price action. On the daily chart, I see that AUD/USD is trading in a sideways mode since the 11th of June. Therefore, I would adopt a neutral stance as far as the overall picture is concerned.
    • Support: 1.0885 (S1), 1.0820 (S2), 1.0700 (S3)
    • Resistance: 1.0975 (R1), 1.1030 (R2), 1.1100 (R3)

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