Forex: Pacifics both suffer, AUD/NZD range bound in Asian session

By IBTimes Staff Reporter | December 17 2009 9:41 PM

FXstreet.com (London) - AUD/NZD is trading in a tight range this session, oscillating between 1.2486 and 1.2472, and trading right in the middle at 1.2477/84. The pair regularly trades sideways due to the strong correlation between the pacific currencies, with NZD often following the larger economy of its close trading partner the Aussie.

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In the case of breakout for the pair, support is found at 1.2436 and after that 1.2417 (Dec 17 Low). Resistance on the upside 1.2508 and after 1.2533 (Dec 17 High).

Both the Aussie and the Kiwi have been recent losers against the Dollar, The New Zealand Herlad gives us insights to why: ANZ bank said end of year position squaring looked to be gaining a head of steam, judging from the overnight price action, as risk was taken off the table across markets. The clear beneficiary had been the US dollar and US bonds, while the clear losers were risky assets and high yielding currencies such as the NZ and Australian dollars, ANZ said.

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