AUD/NZD Price Analysis: Battles short-term falling wedge ahead of a key day
|- AUD/NZD extends recovery moves from 1.0900 after weakness in New Zealand Building Permits dominates over Aussie PMIs.
- Confirmation of a bullish chart pattern will refresh the monthly high.
- 200-bar SMA, 61.8% Fibonacci retracement offer the key support.
AUD/NZD stays on the front foot around 1.0955 during the pre-Tokyo open trading on Tuesday. The aussie cross recently ignored downbeat activity numbers from Australia while paying more attention to -4.5% figures of New Zealand Building Permits. As a result, the quote probes a short-term falling wedge portrayed from August 20 amid bullish MACD.
However, the buyers are likely to wait for a four-hour closing past-1.0960 before confirming the bullish play towards the monthly high of 1.1045.
It’s worth mentioning that September 2018 top surrounding 1.1065 and 1.1100 may lure the bulls after 1.1045. Though, highs marked during August 2018 near 1.1190 will challenge the pair’s further upside.
Meanwhile, the 1.0900 threshold and the formation’s support around 1.0880 can entertain sellers during the quote’s pullback.
Should AUD/NZD prices remain weak past-1.0880, which need support from the currently bullish MACD, 200-bar SMA and 61.8% Fibonacci retracement of the previous month’s upside, near 1.0845/40, will be in the spotlight.
It should also be noted that China’s Caixin Manufacturing PMI and RBA will be the key events for the pair while looking forward.
AUD/NZD four-hour chart
Trend: Bullish
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