AUD/NZD Price Analysis: Marches towards 1.0800 on mixed NZ trade numbers ahead of RBA Minutes
|- AUD/NZD picks up bids to cross three-week-old resistance line despite mixed New Zealand trade numbers for February.
- New Zealand Trade Balance improved but Exports and Imports eased.
- “Double bottom” bullish formation lures buyers but 1.0800 is the key hurdle.
AUD/NZD extends the previous day’s strong gains to 1.0760 amid mixed New Zealand trade data, published early Tuesday in Auckland. In doing so, the exotic pair crosses a three-week-old resistance line while highlighting the “double bottom” bullish chart pattern on the four-hour play.
That said, New Zealand’s Trade Balance improved to $-714M in February versus $-1,450M expected and $-2,113M prior (revised). However, the Imports eased to $5.95B from $7.42B while the Exports also declined to $5.23B compared to $5.30B prior during the stated period.
Given the double bottom formation and the quote’s sustained break of the previous key resistance line, the AUD/NZD is very much expected to rise further, backed by bullish MACD signals.
However, a one-week-old resistance line joins the 100-SMA to highlight the importance of the 1.0800 as the strong upside resistance.
Should the quote remains firmer past 1.0800, the odds of witnessing a rally toward the early-month high close to 1.0890 can’t be ruled out.
Alternatively, the resistance-turned-support line of near 1.0750 restricts the immediate downside of the AUD/NZD pair, a break of which could drag the quote back to the 1.0700 round figure before challenging the double bottoms surrounding 1.0675.
AUD/NZD: Four-hour chart
Trend: Further upside expected
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