AUD/NZD hits 1.11, highest since Dec 2013

FXStreet (Bali) - One of the most representative pairs of the broad-based NZD weakness is the AUD/NZD, currently being paid around NZD 1.11 per 1 AUD, highs not seen since December 2013, ahead of Chinese PMI data.

The fact that the AUD/USD remains in a well defined 92-95 cents range, coupled with the heavy selling pressure NZD/USD has been exposed to, led the AUD/NZD to finally break above sticky resistance area at 1.1040-50 in the last Asian session, right at the same time as NZD/USD broke an important psychological support at 0.84.

From a technical perspective, the breakout of 1.1040-50 allows now further upside towards 1.1170, next key supply imbalance as per the origin of a sharp decline last Dec 3, 2013. On the downside, any approach towards 1.1040-50 should be perceived as a buying opportunity.