AUD/NZD spikes on knee-jerk risk flight, but bearish outlook remains

• The Aussie bounced against the Kiwi as markets jerked following the US' ramp=up of trade tariff threats against China.
• The AUD remains in a weakened position against the NZD as data continues to bolster the Kiwi.

The Aussie is back to the topside of a range against the Kiwi, trading into 1.0575 as markets bounce back from a surprise tariff announcement from the White House that brought trade war fears to the forefront after Thursday's risk recovery.

The AUD/NZD fell in the early week as confidence remains somewhat higher in the Kiwi, bolstered by good global dairy trade numbers and a budget surplus for the New Zealand government, while the Aussie has been left to fester on middling economic growth and a central bank that continues to lag on interest rate outlooks.

The pair was able to arrest the early week's tumble, but upwards movement is remaining tricky to obtain despite the Aussie unexpectedly spiking higher following the announcement that US President Trump is seeking more tariffs on a further $100B goods from China, and the pair surged from the 1.0530 region.

AUD/NZD Levels to watch

The pair has been in a steady decline since October 2017's high of 1.1290, and the AUD/NZD is holding close to the bottoms on Daily candles. A continuation of the bear trend will see immediate support from the day's low of 1.0537, with little support remaining except the year's low point at 1.0525, but a bullish correction will need to contend with the week's high at 1.0655 before challenging the previous major resistance level at the 1.0800 major handle.