Risk sentiment continues to look rather dour to start the new month/quarter/half-year, and that is weighing further on the aussie and kiwi today. Both currencies are down 1% against the dollar and most notably, we are starting to see the technicals crack once again. I'll let the charts do the talking:
The low for AUD/USD hit 0.6825 and that is the lowest since June 2020, with technical support around the region of 0.6830-50 starting to crack. Meanwhile, NZD/USD is down to lows of 0.6175 - the lowest since May 2020.
A firm break into the weekly close looks set to establish the next leg lower for both pairs:
The AUD/USD drop puts the focus on the key trendline support (white line) again and more notably the 50.0 Fib retracement level at 0.6757. As for NZD/USD, there is little in the way of a potentially sharper drop towards 0.6000 next.
