There is reported to be massive optionality around 1.00 in the AUD/NZD cross and I expect to see a significant test of this level this week. Forget about fundamentals, this is purely about finding the weak side of the market in the short-term.
The fact the recent rally stopped squarely at technical resistance near 1.0220 is a strong confirmation that the downtrend is still in charge.
If 1.00 does break, I would not be at all surprised to see a sharp 3-5% drop before common-sense and fundamentals kick back in.
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