Forex AUD/NZD lower on RBA cut fears

FXstreet.com (Barcelona) - AUDNZD is currently dipping to fresh session lows at 1.2689 bids where it started the week, and very close of Monday's weekly lows at 1.2680. The cross is being sold off following worse than expected Capex index data in Australia, and "Odds are now 67% for a cut according to rate futures," says David Scutt in his twitter account, Treasury Dealer at Arab Bank Australia.

"The chances of a rate cut by the RBA next Tuesday are edging very slowly higher," says FXWW founder Sean Lee, who adds: "We are seeing some modest AUDNZD selling this morning which makes sense, as longer-term position holders take out some hedge protection ahead of risk events." At the same time, previous NBNZ business confidence increased for sixth consecutive month in NZ helping the Kiwi to print fresh session highs at 0.8244 just few pips shy of previous weekly highs on Monday, thus helping on the AUDNZD move lower.

Immediate support to the downside for AUDNZD lies at current levels/Monday/Friday's lows at 1.2689/79 as Oct 24 highs and key pivot since then, followed by June lows at 1.2669, and Oct 30 highs at 1.2647. To the upside, nearest term resistance shows at Nov 13/15 lows 1.2712, followed by Tuesday's highs at 1.2754, and Nov 16 highs/200 day SMA at 1.2772/5.