AUD/NZD Price Analysis — December 21

The AUD/NZD maintained a bullish momentum through the trading session on Monday, amid a risk-off market mood. The declining risk mood seen at the start of the week has put the Aussie and the Kiwi on a backfoot against other major currencies. The risk sentiment got triggered by fears over the newly-found strain of the deadly Coronavirus in the UK.

Earlier today, the government of New South Wales announced that some travelers coming in from the UK were carrying the new strain of the Coronavirus.

Australia and New Zealand have handled the COVID-19 outbreak, as Australia reported just 15 cases after conducting 38,000 tests on Monday. Nonetheless, Australian states are enforcing entry restrictions on Sydney residents to keep the new strain of the virus contained in New South Wales only.

Currently, the Aussie has not reacted to the news of the latest outbreak, but speculators predict that the report will take its toll on the currency soon.

In other news, recent data from New Zealand showed that Credit Card Spending in November fell by 5.6% YoY. However, this positive development has gone unnoticed or ignored by market participants.

Also, the People’s Bank of China (PBoC) reported its Interest Rate Decision in the mid-Asian session today. This report has also failed to boost market mood since its release.

AUD/NZD Value Forecast — December 21

AUD/NZD Major Bias: Bullish

Supply Levels: 1.0725, 1.0800, and 1.0830

Demand Levels: 1.0670, 1.0650, and 1.0600

The AUD/NZD continues to trade up our ascending channel, despite weakness in both currencies. The pair seems decisive in its ascent and could likely hit the crucial 1.0725 resistance soon.

Any fall from the current level should get repelled by the 1.0670 level (the base of our channel). A subsequent fall should get supported by the 1.0650 line.

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