AUD/NZD rises further to 4-week highs

AUD/NZD continued to rise during the European session and peaked in New York at 1.0455, the highest level since August 26. It was trading around 1.0465, moving between 1.0440 and 1.0460, consolidating important gains for the day.  The pair is having the best performance in a month.

Last week it bottomed at 1.0230, the lowest level in a year and then started to recover at a modest pace but constantly. Overnight it jumped to the upside after the Reserve Bank of New Zealand opened the doors for a possible rate cut in its interest rate. The dovish message from the RBNZ pushed the kiwi sharply to the downside across the board.

Technical levels

The pair is trading back above the 20-day moving average for the first time since mid-August and is also on top of the 1.0320/40 area that was a relevant support in July and August.

The recovery so far found resistance around the 1.0460/70 area, that is a key level; above here a test of 1.0500 seems likely while the next medium-term resistance is seen at 1.0550.

On the opposite direction, support now could be seen at 1.0430 (Sep 06 low), 1.0370 (Sep 21 high) and 1.0340 (Sep 19 high).