Lower commodity prices, especially the gold, is putting pressure on the Aussie. This should trigger a profit-taking break back to at least .9472 to .9429. With the main trend up, this zone should offer the first buying opportunity.

Traders are not chasing the AUD/USD at current levels after being burned a few times at these levels over the past few months.

Weak Economy and Lower Commodity Prices Put Pressure on NZD/USD

The NZD/USD could not change the trend to up this week despite several opportunities to break out over .7937. The chart pattern is now suggesting a minimum break back to .7729 - .7683.

Despite the attempt to stimulate the economy with a tax cut, traders have been reluctant to buy strength at current levels because of lingering bearish fundamentals such as weak housing and high unemployment.

Trend traders can stay short as the chart pattern and the fundamentals support a renewal of the downtrend. Counter-trend traders can look for a quick rally if .7792 to .7683 holds as support.

Please do not hesitate to contact us at 1-800-971-2440, with any questions.

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