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Forex: AUD/NZD capped below 1.24 following RBA

AUD/NZD is still a +0.39% higher for the week, last at 1.2359, despite retracing strongly from fresh weekly highs at 1.2424, following RBA statement leaving rates unchanged at 3.00% but with scope for further cuts, the central bank said, which lead to an AUD/USD sell-off that brought AUD/NZD to recent session lows at 1.2344. The cross recovers from Monday's fresh 29-month lows at 1.2278.

Initially NZD/USD easing below the 0.8440 level during late NY trade, last at 0.8420, off recent fresh session and weekly lows at 0.8409, pushed the cross AUD/NZD to the upside, but was unable to keep higher once RBA came in, even though better than expected Australian housing and trade balance data made Aussie print fresh weekly highs against USD. Tomorrow's Aus retail sales with NZ closed over holiday could bring some more volatility to the AUD/NZD cross.

Immediate support to the downside for AUD/NZD lies at recent session lows/yesterday's London session highs 1.2344, followed by Monday's fresh 29-month lows at 1.2278, and June 2010 lows at 1.2204. To the upside, closest resistance shows at recent session/weekly highs/Jan 27 lows 1.2424, followed by Jan 29 lows at 1.2466, and Jan 28/30 highs at 1.2548/54.

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