AUD & NZD Update – 06/10/2017 (10:30am) – by Arjun Lakhanpal

AUD & NZD Update – 06/10/2017 (10:30am): AUD & NZD – Both traded with an offered tone again in Asia with the USD driven higher as US FI came under pressure; this saw recent support broken in both AUDUSD at 0.7785 and NZDUSD at 0.7130.  Further catalyst to AUD weakness was provided by RBA’s Harper: *RBA’S IAN HARPER NOT RULING OUT RATE CUT: WSJ.  This opens up further downside on the charts towards 0.7600, with focus on US NFP today – and this will be the main driver today, but expect AUD to underperform and soft US data used to sell AUDUSD at higher levels.  Focus next week will be the NZ election outcome and the NZ First party decision around coalition Gov.  AUDUSD support at 0.7740, ahead of 0.7600 with resistance at 0.7785-0.7800.  NZDUSD support at 0.7090 ahead of 0.7000 with resistance at 0.7130-50.