AUD/NZD breaking down as risk appetite takes a plunge, Cohen departure rattling markets

• Risk appetite sapped out of markets as Trump loses another supporter from a key position.
• Aussie losing control, unsupported by a dovish RBA with nothing new on the horizon.

The AUD/NZD is declining in overnight trading ahead of the Tokyo market session, currently testing just beneath the 1.0700 level.

Risk sentiment has evaporated from markets on the heels of Gary Cohen's announcement that he is departing Trump's administration. The Aussie is tumbling against the broader market after climbing on positive markets through Tuesday's trading.

The Reserve bank of Australia (RBA) governor Philip Lowe gave a speech today where he highlighted everything the market already knew, that the Australian economy continues to lag behind global growth trends and the RBA has little choice but to stand pat on interest rates, though Lowe was at least able to conclude that the RBA is still currently leaning more towards rate increases than another decrease. Only time will be able to tell if the Australian economy requires another rate cut, and a further widening of current easy monetary policy if the economic picture for Australia doesn't begin to improve soon.

AUD/NZD Technicals

The pair looks set to continue drifting lower on AUD weakness, continuing to trade beneath the 200-day SMA, and H4 candles show a lower high pricing in, giving bears a better run at the soft double-bottom that formed over the last two weeks. Intraday support is thinning out quickly, sitting at 1.0665 and 1.0654, while resistance piles up from 1.0760 and 1.0820.