AUD/NZD is down 0.5% on the day, with a series of lower lows, lower highs forming since October trading
The pair managed to put up a defense at around 1.0300 in September before price bounced back towards 1.0600 and then leading to the latest downdraft.
The push lower since mid-October hasn't been a straightforward one but it comes through a series of lower highs, lower lows with the latest drop today coming amid a test of trendline resistance from the 12 and 29 October highs.
Amid the divergence in RBA and RBNZ policy, there remains a strong fundamental argument to stay bearish on the pair in the bigger picture of things.
The technical picture may have slowed down a little but the latest developments in the past few weeks certainly starts to make for an argument that we could be nearing the next downside leg for the pair considering the pattern that is forming.
A key test will be the trendline support from the March 2020 and September 2021 lows, now seen @ 1.0310 roughly, adding to the 1.0300 level.
A break below that region will leave little in the way of a potential push towards parity next for the pair. Goldman Sachs shared some thoughts earlier in the day here.
