Losing Altitude

AUD/NZD has given away 24 pips so far and last trades at NZ$1.0903, with both sides of the pair sitting at the opposite ends of the G10 scoreboard. Hard to pin the move on any particular headlines, albeit Australia's continued tensions with China (manifested in the estimated sharp drop in Chinese investment in Oz) may be one of the factors. The rate has just taken a dip through Friday's lows.

• Bears look for a deeper decline as losses past the 50-DMA/Sep 3 low at NZ$1.0818/16 would signal the end of the recent recovery phase, shifting focus to the downside. Next support is at NZ$1.0799, the low of Aug 7. Conversely, a jump above Sep 10 high of NZ$1.0936 would suggest that bullish momentum is still there, bringing Sep 1 high of NZ$1.0960 into view. A break above there would draw attention to the round figure of NZ$1.1000 and Aug 24-26 highs scattered around that level.
• There are no more Antipodean data releases left today, after New Zealand reported its first monthly net emigration since 2013, while the latest PSI reading suggested that its services sector moved into contraction. On a different front, however, PM Ardern will give an update on the nation's/Auckland's alert levels.