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AUD/NZD back below 1.05 handle

FXStreet (Mumbai) - The AUD/NZD has given up its early gains to trade below 1.05 levels as the AUD declined sharply from the day’s high against the USD, thereby erasing early gains in the AUD/NZD cross.

The pair currently trades largely unchanged for the day at 1.0486 levels, after having clocked a high of 1.0526 levels. Both the Kiwi and the Aussie were hit by a weaker-than-expected Chinese PMI manufacturing data for December released yesterday. The Chinese government’s official PMI manufacturing data was confirmed at a 1-1/2 year low of 50.1 in December from November's 50.3.

However, the Kiwi managed to outperform the Aussie as both the currencies fell from the day’s high against the US dollar, thereby pushing the AUD/NZD cross lower. Moreover, the New Zealand dollar has been outperforming the Australian Dollar on relative hawkishness of the Reserve Bank of New Zealand.

AUD/NZD Technical Levels

The pair has an immediate support at 1.0466 (5-DMA), under which losses could be extended to 1.0445. Meanwhile, resistance is seen at 1.05 and 1.0526 levels.

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