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AUD/NZD: Bears have upper hand, strong bids defend 1.09

FXStreet (Bali) - AUD/NZD continues to hold an unambiguously bearish outlook, with the rate pressing against formidable support at 1.09, and technicals indicating - 50/20-day EMA crossover -, for now, that a meaningful recovery in prices is unlikely.

Heavy selling pressure in the AUD/USD weighed on the AUD/NZD, as the Kiwi still shows an overall better performance than its neighboring currency, despite Tuesday's RBNZ lower inflation expectation figures saw the NZD initially coming under increasing pressure.

On the fundamental front, today's Asian calendar is virtually empty, with Australia's construction work done the only release unlikely to affect prices. Traders will be eyeing Thursday's NZ trade balance (21.45 GMT) and Australia's CAPEX (00.30 GMT) to determine the next short term bias, with the latter release potentially a strong mover for AUD/NZD.

Technically, AUD/NZD, which characterizes by spending prolonged periods of time capped in well defined ranges, unless economic events out of Australia/New Zealand stimulate flows, should see a fairly tight affair with 1.09/0910 protecting the downside, while 1.0940/50 is expected to see selling interest limiting further moves up. Expect active scalping activity as the pair approaches aforementioned range edges.

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