AUD/NZD: medium term bull trend still intact, target 1.0750

AUD/NZD was better-bid overnight until the cross met 1.0679 highs and a drift back to the downside ensued back to the mid point of the same handle, capping the rally from 1.0571.

The theme overnight was risk-on and the Aussie was the most robust vs the US dollar that seems to continue strengthening no matter what cap it has on. Today was about the Fed, despite the nonfarm payrolls disappointing slightly, rather than a flight to safety as markets take on a positive tone on the back of oil rallying and how Hillary Clinton emerging victorious in  the media from the second debate. However, back to the antipodeans, analysts at Westpac explained in respect to the cross, "The rally since mid-Sep accelerated overnight, 1.0750 the next target area (8 Aug high). Australian commodity prices have outperformed NZ's since mid-Sep, providing fundamental justification."

AUD/NZD levels

With the medium term bull trend still intact from 1.0234, the analysts at Westpac offered AUD/NZD in a 1-3 month outlook as higher to 1.0750 or above. "The RBA likely to remain on hold this year while the RBNZ should ease further. Moreover, the cross remains well below fair value estimates implied by interest rates, commodity prices and risk sentiment."

Meanwhile, current price is 1.0656, with resistance ahead at 1.0658 (Monthly High) and other levels come as 1.0658 (Weekly High), 1.0660 (Daily Open), 1.0663 (Weekly Classic R1) and 1.0668 (Daily High). Next support to the downside can be found at 1.0651 (Daily Low) and other levels comes as 1.0647 (Hourly 20 EMA), 1.0641 (Daily Classic R1), 1.0613 (Hourly 100 SMA) and 1.0608 (Daily Classic PP).