The antipodean currencies fall to recent five-week lows towards the greenback

The greenback continues to remain strongly bid in European buying and selling at present and that’s pitting the antipodean currencies on the lows for the day up towards the buck. AUD/USD is down 1% to 0.6595 at present and NZD/USD down 0.8% to 0.6150 as each foreign money pairs are seeing a significant breakdown on the week. They’re each buying and selling to recent five-week lows now and eyeing a steeper drop. This is a have a look at each charts:

There are similarities to each charts however the scale of the drop in AUD/USD seems to be extra intense, because the pair now attracts nearer in the direction of a check of its 200-day transferring common (blue line) at 0.6581 subsequent. As for NZD/USD, the drop at present carries over the technical breakdown that was preluded already in buying and selling yesterday here. As talked about then:

“In any case, the fall now looks to potentially move away from the 23.6 Fib retracement level at 0.6228 and could angle towards the 38.2 Fib retracement level at 0.6141 as the next technical test.”

Including to the technical setback for NZD/USD is a drop beneath its personal 100-week transferring common at 0.6213. That may give sellers an added edge to maintain the draw back momentum on the week going.

For buying and selling at present, the softer threat tone in markets isn’t actually serving to with the temper for the aussie and kiwi. European indices are decrease throughout the board whereas S&P 500 futures are down 0.5% on the day at present.

Add that to increased yields and the potential technical breaches in different greenback pairs as nicely, and that’s all establishing for a probable additional decline in each AUD/USD and NZD/USD within the short-term.