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Forex: AUD/NZD holding above 1.2000 ahead of RBA

FXstreet.com (Barcelona) - After wild moves all week long, AUD/NZD is last at 1.2008, falling from yesterday's Asia-Pacific session high at 1.2135, following widely unexpected big positive number in Australian jobs market for the month of April. The cross now has moved back lower to initial support around the 1.2000 round, on the back of massive Aussie weakness, once the pair has breached the mid to long term support base at the 1.0100 level, caused on USD strength across the board, and lead also on Yen weakness breaking the 100 Yen per USD level.

About 1 hour away from the release of the RBA Monetary policy statement at 01:30 GMT, biggest risk event for the session for the cross, the AUD/NZD has printed a fresh 2-day session lows at 1.1989. According to IFR Markets analyst Richard Sexton: “This is normal bottoming price action and presents a buying opportunity,” Richard says, noting the multi-timeframe MACD bullish divergence. The cross is down -0.56% for the week, while -4.31% year to date.

Immediate support to the downside for AUD/NZD lies at mentioned session lows 1.1989, followed by Tuesday's record 3.5-year lows at 1.1929, and mid Sept 2008 lows at 1.1806. To the upside, closest resistance shows at current levels as Wednesday's/yesterday's lows 1.2020, followed by April 26/30 lows at 1.2048, and Monday's highs at 1.2106.

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