AUD/NZD – stuck at confluence of 50-DMA & 100-DMA

The AUD/NZD spiked in Asia, but is having a tough time taking out the confluence of 50-DMA and 100-DMA seen at 1.0485.

Rally fuelled by weak GDT auction

Prices at Fonterra's GlobalDairyTrade auction dropped for the second time as whole milk powder prices unexpectedly sank amid increased volume on offer. The GDT price index fell 3.9% and Whole milk powder dropped 7.7%. 

Meanwhile, the strong China manufacturing PMI report released on Tuesday kept the Aussie dollar in demand. 

Consequently, the AUD/NZD cross jumped from 1.0425 to 1.0487 levels. The cross was last seen trading around 1.0479 levels.

AUD/NZD Technical Levels

A break above 1.0485 (50-DMA + 100-DMA) would expose 1.0518 (Dec 5 high). On the lower side, breach of support at 1.0463 (previous day’s high) could yield re-test of 1.0439 (61.8% of Sep low - Oct high).