AUD/NZD – Offered at 1.03, oversold on charts

AUD/NZD was offered 1.03 handle earlier today following which it resumed its journey towards previous day’s low of 1.0264 levels.

Oversold on charts

The slide from August 9 high of 1.0743 has left the pair oversold as per the daily RSI, which now hovers around 20.00 levels.

Moreover, the slide in the pair represents the yield differential advantage that NZD has over the Aussie. The slide may continue in case Fed rate hike bets spike since NZD is likely to outperform the Aussie due to yield differential advantage. On the other hand, corrective move could be seen during bouts of broad based USD selling.

As for now, better-than-expected Aussie trade deficit figure is not helping the AUD regain the bid tone.

AUD/NZD Technical Levels

A break below 1.0264 (previous day’s low) would open doors for a drop to 1.0157 (Mar 2015 low) level. On the other hand, breach of resistance at 1.0350 (previous month’s low) would expose 1.0580 (monthly 5-MA).