Forex: AUD/NZD higher, stalls below 1.2700/200 day SMA

AUD/NZD is last at 1.2637, off recent fresh 2-month highs at 1.2684, printed yesterday on the back of a combination of a RBNZ dovish monetary policy statement, and an incredibly much better than expected Australian jobs report (7 times higher than the median consensus and 3 times than the most optimistic one). The cross is higher by +1.5% for the week so far, with Aussie the second strongest currency among majors for last 2 trading days, only below Pound.

AUD/NZD is now below ANZ's target projected 3 days ago, coming from a long position opened days before around the 1.2240 level. The cross has been rising in last few days on the back of the worst drought in New Zealand in last 30 years, media reports. “New Zealand is experiencing its most widespread drought in at least 30 years, the government said today, as dry conditions across the North Island threaten economic growth and cause global milk prices to rise,” Chris Bourke reported for Bloomberg in Wellington.

Immediate resistance to the upside for AUD/NZD shows at recent session and 200 day SMA 1.2647/57, followed by mentioned fresh 2-month highs yesterday at 1.2683 and Dec 26 highs at 1.2700. To the downside, closest support lies at session lows 1.2610, followed by Dec 26 lows at 1.2582, and Wednesday's highs at 1.2540.