Both the Australian (AUD) and New Zealand Dollar (NZD) have been rising recently as investors are optimistic about global growth prospects and are willing to take more risk. One reason for this optimism is good macroeconomic data from China, which is the most important export destination for Australian and New Zealand goods. Australia's economy, and the value of its currency, is heavily dependent on Chinese demand, with China taking a third of all its exports. To support its growth, China needs vast quantities of raw materials such as iron ore, coal and natural gas, which are supplied by Australia. New Zealand, on the other hand, exports dairy products and meat, mainly lamb and beef.
Therefore, when the Chinese economy grows, the demand for these products increases significantly, leading to an appreciation of the Aussie (AUD) and Kiwi (NZD). Conversely, when demand falls, these two currencies also tend to fall.
The Australian dollar has been trading in an uptrend channel for several weeks and has reached a resistance level in the region of 0.7350 - 0.7415 (A). A break to the upside would allow the exchange rate to rise towards the next resistance level around 0.7600. A fall below the lower channel boundary would allow a test of the support level around 0.7230, and after further downward pressure, the price could fall without any support towards the area of 0.7050 - 0.6990 (B).