AUD/NZD drops to 3-day low, eyes NZ GDT auction

AUD/NZD dropped to 3-day low of 1.0779 levels on the cautious tone of the RBA minutes and due to weakness in the iron ore prices, with traders eyeing NZ GlobalDairyTrade auction.

Rejected again at weekly 200-MA

The currency pair failed once again to hold above the weekly 200-MA level of 1.0825 levels. Aussie failed to capitalize on the slight weakness in the safe haven assets, largely due to the drop in the iron ore prices to a fresh five-month low of $64.60/tonne.

RBA minutes expressed caution regarding risks in the housing sector and took note of the weakness in the personal consumption and labor market. That added to the bearish tone around the Aussie.

The focus now is on the NZ GDT auction. Expectations are rising that prices paid at Global Dairy Trade (GDT) event.

AUD/NZD Technical Levels

A break below 1.0761 (Apr 7 low) would open up upside towards 1.0748 (Feb 22 high) and 1.07 (zero levels). On the other hand, a break above 1.0797 (50-DMA) would open doors for 1.0825 (weekly 200-MA) and 1.0847 (Apr 13 high).