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AUD/NZD unable to hold above 1.0700, recovery limited

FXStreet (Córdoba) - AUD/NZD is about to end the day trading at 1.0680/90, at the same level it closed on Friday, when it rallied from 5-month lows. The pair remains under pressure, ahead of the RBNZ meeting on Wednesday but before in a few hours the trade balance report form New Zealand will be released.

AUD/NZD: Has it bottomed?

The pair is likely to face a week of great volatility with many economic reports from New Zealand and Australia and also the RBNZ. During August AUD/NZD broke the 1.0900 barrier and accelerated the decline.

Last week it continued to slide and bottomed at 1.0570/75, the lowest since early May. Afterwards it rebounded and today rose further. It peaked at 1.0735 but if failed to hold above 1.0700 and pulled back.

The rejection form levels on top of 1.0700 could suggest that the bearish pressure still persists. The area around 1.0575 has been a relevant support and resistance on 2015. If during the current week, with all the events and numbers ahead it manages to hold above 1.0575 it could build the base for a stronger recovery, particularly if it consolidates above 1.0840 (20-day MA).

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