Technical analysis of AUD/NZD – suggests short

Technical Analysis

Here’s a snippet via Nordea on the Australian and New Zealand dollars

Citing a bearish trend channel for a lower AUD/NZD

  • Technically, a short position in AUD/NZD looks compelling
  • bearish channel since late-2017 remains intact
  • We opt to go short AUD/NZD
  • target 1.02 
  • S/L 1.0820

Nordea support with some fundamentals:

  • cocktail of higher USD/CNY, weak domestic Australian fundamentals and wobbly risk appetite ahead

More:

  • We prefer NZD to AUD as AUD has thrived due to a relative positive mood around China vs. RoW growth
  • AUD has traded like a rocket in recent weeks despite starring directly into a housing market abyss again. Current auction clearance data suggest that Australian house prices will drop (at least) 1.5% a month in the coming period. 
Here's a snippet via Nordea on the Australian and New Zealand dollars

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