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Aussie and Kiwi Dollars Still Weak Versus the US Dollar

Technical Analysis

Video Analysis

The AUDUSD and NZDUSD spot FX rates have remained under pressure so far this week, to maintain and reinforce short-term bearish themes evident for much of this year. The moves in late August to new, multi-year lows leaves a downside risk for both the A$ and NZ$ against the US currency into early September.

AUDUSD

Another push lower through midweek and despite an intraday bounce we see bias Thursday lower target, having breached the psychological/ option level at .7000.

Furthermore, the reversal below the long term trend line from 2001 leaves a re-energized bear pressures into early September.

Short/ Intermediate-term Outlook – Downside Risks:

  • We see a negative tone resurfacing with the bearish threat to .6857
  • Break sees .6645 and .6500

Daily AUDUSD Chart

AUDUSD

Monthly AUDUSD Chart

Monthly AUDUSD

NZDUSD

  • A mini bounce effort, but still a low level consolidation Wednesday, capped by .6391 and hitting a new setback low (since the spike lower) to leave bearish risks lower into Thursday.
  • In addition, the previous aggressive plunge to a new cycle and multi-year low last week, through a long term support at .6404 leaves bias for a push lower into early September

Short/ Intermediate-term Outlook – Downside Risks:

  • We see a negative tone with the bearish threat to longer term targets at .6196/54.
  • Overshoot threat is lower to maybe .6000.

Daily NZDUSD Chart

NZDUSD

Monthly NZDUSD Chart

Monthly NZDUSD

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