AUD/NZD sold off sharply last week,.....>

AUSSIE-KIWI: AUD/NZD sold off sharply last week, taking a nosedive through the

50-DMA, an ascending trendline and a support zone from the Oct lows. As a

result, the rate broke out of its recent range. The drop was foreshadowed by

negative divergences unfolding both in the MACD and RSI indicators, which warned

of an imminent market top. The 100-DMA and a new tentative trendline (the dashed

line in the chart) at NZ$1.0628/20 have so far proven resilient, but if firmly

severed, they would expose the 200-DMA at NZ$1.0567.

- Central banks were key in driving price action last week. The RBNZ's surprise

decision to leave the OCR unch. without communicating urgency to loosen policy

put a bid into NZD. Across the Tasman, a bleak Aussie labour mkt report boosted

RBA easing bets, hurting AUD. Today's minutes from the RBA's Nov meeting

reassured the doves, revealing that members mulled trimming the cash rate.

- Elsewhere, the drawn-out Sino-U.S. trade negotiations remain under scrutiny.

Any breakthrough would allow the AUD/NZD to bounce, but so far a flurry of

duelling headlines has effectively left us in the dark.

- See chart at: https://emedia.marketnews.com/marketnewsintl/AUDNZD19112019.png