AUD/NZD: Bulls attack 1.1000 threshold despite mixed Aussie catalysts
|- AUD/NZD keeps recovery moves from 1.0962 to print two-day winning streak.
- Australian Payroll Jobs decline 1.0%, China’s Mengniu Dairy drops plans for purchasing an Aussie business unit.
- US-China trade deal comments, virus-related headlines favor the risk-on mood.
- New Zealand’s trade details will be the key amid an empty calendar.
AUD/NZD remains firmer around 1.0982, up 0.07% on a day, amid the early Tuesday’s trading the cross earlier refreshed the intraday high with 1.0998 figures as risk-tone sentiment remains positive. That said, the pair’s pullback from the intraday high could be attributed to downbeat Aussie employment data and concerns surrounding the bitter relations between China and Australia.
The latest data concerning Australia’s Weekly Payroll Jobs and Wages suggest that the jobs were down 1.0 over a month to August 08. Further details suggest that the employment barometer is down 4.8% compared to the mid-March period when the coronavirus (COVID-19) hit market sentiment.
Additionally, news that a joint of Japan's Kirin Holdings and China Mengniu Dairy Co abandoned plans to buy Australian dairy firm Lion-Dairy added upside barriers for the AUD/NZD prices.
Even so, recent optimism surrounding the US-China phase-one trade deal and receding virus cases in Australia, China, Japan and the US seem to favor optimism.
Amid these catalysts, S&P 500 Futures refresh record high to 3,445.88 whereas the US 10-year Treasury yields also extend the previous day’s run-up with a gain of 2.1 basis points (bps) to 0.667%. Further, stocks in Asia-Pacific also take the bids by the press time.
While the overall risk-on sentiment keeps the pair positive, comparative weakness of the New Zealand dollar (NZD) may also add to the pair’s strength unless the RBNZ comes out with the bullish bias, which is highly unanticipated.
Technical analysis
Buyers await a clear break of 1.1000 round-figures to challenge the monthly high of 1.1045. On the contrary, sellers will not take risk of entering unless the quote closes below 1.0930/25 on a daily chart.
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