AUD/NZD depressed near 6-week lows, but keeps 1.0400

The cross in the AUD/NZD stalled the recovery near 1.0470 region and resumed its downslide, now testing fresh six-week lows near 1.0400.

AUD/NZD weighed down sustained NZD strength

The AUD/NZD pair now drops -0.26% to 1.0413, having posted fresh six-week lows at 1.0407 last hour. The ongoing bullish momentum behind the NZD/USD pair backed by RBNZ Governor Wheeler’s hawkish comments outweighs the gains seen in the Aussie pair, thereby keeping the cross depressed near six-week lows.

Moreover, the gains in the AUD/USD pair remains limited as the worse-than expected Australian construction output data continues to weigh on AUD/NZD. Australia’s construction output data for Q2 came in at-3.7% versus -2.0% expected. While markets appear to have ignored poor NZ trade data.

Next of note for both the AUD and NZD is the Jackson Hole Symposium beginning tomorrow, which will shape up the next moves in the greenback.

AUD/NZD Technical Levels

To the upside, the next resistance is located at 1.0450 (psychological levels) and above which it could extend gains to at 1.0488 (daily R2).To the downside immediate support might be located 1.0400 (round number) below that at 1.0360 (daily S2).