AUD/NZD Price Analysis: Correction likely to extend while under 1.1060

• Wild week for AUD/NZD with NZ employment and a rate hike in Australia.
• Cross about to end week with gains although far from the top.
• Correction could extend next strong support at 1.0970.

The AUD/NZD cross is about to post the highest weekly close since August 2018. The aussie peaked near 1.1200 and then pulled back. It is hovering around 1.1030/40. The close far from the top adds to some exhaustion signs, like the daily RSI turning to the downside.

The ongoing pullback could continue while the cross holds below 1.1060. A daily close above 1.1100 should increase the odds of another test of 1.1200.

The correction found support at 1.1015. A break lower should open the doors to more losses targeting 1.1000 first and below the next support at 1.0975. If AUD/NZD reaches 1.0975, a rebound seems likely, while a slide below could damage the outlook for the aussie.

On a long-term perspective, the 1.0750 area contains and uptrend line from November low and the 100-day Simple Moving Average.

After a volatile week, with employment data from New Zealand and a rate hike from the Reserve Bank of Australia, AUD/NZD is likely to calm, starting to move in smaller ranges.

AUD/NZD daily chart

Technical levels