GDT auction results show another soft number
The November 19 GDT auction results were weak once again and this should keep the pressure on the NZD.
However, the technicals may play in the decision. The AUDNZD is trading at a key resistance level and it looks like the traders on the first look at least are leaning against it - despite the weak results (the price had been moving higher into the results). Both the 100 day MA and the 61.8% of the move down from the September high comes in at 1.1012 and 1.1020 respectively. The price peaked at 1.1016 and is now trading above and below the 1.1000 level. Actually, as I type the pair is back up testing the 100 day MA at the 1.1012 level after falling to a low at 1.0995.
Traders will be paying close attention to this level as risk can be defined and limited with a break above likely triggering stops. Key test.
If the sellers are to take more control, a move below the the 38.2-50% of the last leg higher today will be eyed (see chart below). That would take some of the wind out of the bullish move and should see further corrective action lower.
