FX.co ★ Blackpink | AUD/NZD

The Aussie dollar (AUD) continued to decline against the New Zealand dollar (NZD) as the latest results from New Zealand's general election suggested a slim victory for the ruling party coalition. The AUD/NZD pair has declined 0.7% so far today, trading at session lows near 1.2300, with sellers eyeing support near the low of the last two-month range at 1.2265-1.2270. Latest results from the New Zealand general elections showed that the center-right National Party, led by New Zealand's Prime Minister Christopher Luxon, along with its partner, the Labour Party, captured 67 of 131 seats in parliament. However, the final results are expected to be published on November 27, and the leaders of the main parties said they would begin talks that day. On macroeconomic indicators, China's numbers have been mixed so far today. The Consumer Price Index (CPI) growth slowed to 0.7% annually in October, from 0.9% in September, while the Producer Price Index jumped 5.7% annually, the highest rate recorded in more than four years. The AUD and NZD currencies gained against the backdrop of the release. AUD/NZD is at 1.2299, continuing the downtrend from mid-October highs to below the lower trendline of the descending channel. Technical indicators on the 4-hour timeframe suggest a strongly bearish market, with the Relative Strength Index (14) near oversold readings. Still, it is not there yet, and the Moving Average Convergence Divergence (MACD) histogram shows wider and wider bars, suggesting further decline before recovery begins. Below 1.2300, bears will likely challenge the September 8 and October 16 lows in the 1.2265-1.2270 range. Below this, the next target is the September 4 low at 1.2220, but that seems a bit far-fetched in the coming days. From above, the first resistance should come near the channel's lower boundary at 1.2335, followed by the previous support area before 1.2375 (November 5 and 6 lows) and the 1.2425 level, where Friday's top converges with the channel's upper trendline.