Risk assets took a bit of a battering to close out the week and early in Monday trade, we will be watching to see whether the AUD and NZD can hold on.

The fall in risk assets began mid-last week, led by some big falls in the tech names. This translated into selling pressure on the AUD/USD and NZD/USD. In some ways, both pairs are really at the mercy of investor sentiment on any given day of the week.

While US employment did show a big improvement, we saw more selling in stocks and risk plays as investors take some profits after what has been a big run.

AUD/USD

After the mini-correction, the AUD/USD fell all the way to 0.7220 or thereabouts which was quite a fall given that price had been as high as 0.7400 and looking bullish.

Currently, price is trying its best to hold onto the 0.7280 level which was the prior swing high. That said, 0.7300 will also be providing some selling pressure.

What will likely be a telling story will be how price does react on the next attempt to push higher. If we see a lower high, which is highly likely, that might be a good opportunity for another short.

Today, we will see some Chinese trade data, but otherwise, it will be a thin day of data and with the US away for a holiday, I don’t expect any significant moves in the next 24 hours.

NZD/USD

Meanwhile, the NZD/USD again looks a little bit more bullish as price is holding nicely above the 0.6700 level. That really set price up for another leg higher if and when stocks and risk asset get a little bit of a bounce.

Again that is likely not going to be today, with the US away, but for now, we will remain bullish.