Asian pairs were relatively muted in trade yesterday, as the USD continues to hold up at the moment.

While there are plenty of headlines around at the moment, the risk trade continues to stay strong, although this week we haven’t seen very big moves. That said there was big spike in the VIX on Monday, which indicates we could be seeing some more action in the coming days.

For the most part, the AUD/USD and NZD/USD remain within the bounds of some major levels and we won’t likely see much change until those break.

AUD/USD

The Aussie is arguably the most bullish at the moment and a lot of that can be attributed to the strong price of iron ore, which is a key export.

The trendline to the upside remains intact and even after the fall in price earlier in the week, we can still see support holding strong.

Support is in place, at the 0.7500 level and we can see that price is moving towards that area for another test.

As I’ve been saying for some time, the AUD/USD is a little bit at the mercy of the USD, which has started to find some support after plenty of selling in recent times.

To the upside 0.7600 remains the key resistance area with the highs around the 0.7635 region.

NZD/USD

The Kiwi is looking more bearish to me as it has broken the uptrend line, which is slightly different to the price action we are seeing in the Aussie.

0.7000 is the massive level below, which is going to be huge support. I think given that it is a round number level, it will act as a magnet and will be tough to crack.

The highs sit at 0.7150 or just above and we would need a big rally to push though. Which again, would be on more USD weakness as much as anything.