AUD/NZD pulls back from 21-DMA after Australia, New Zealand data
|- AUD/NZD sellers cheer upbeat New Zealand Trade Balance amid sluggish AU PMI, job numbers.
- Soft Australian employment market indicators favor the RBA’s bearish bias.
Having witnessed red signals from the Australian economic calendar, a contrast to welcome New Zealand Trade Balance data, the AUD/NZD pair reversed from 21-DMA while currently taking rounds to 1.0430 during early Wednesday.
Firstly, the June month New Zealand Trade Balance rose past the monthly forecast of $100 million to $365 million. The data also crossed $-5.105 billion consensuses for YoY to -$4.904 billion.
On the other hand, July month Preliminary readings of Australia’s CBA/Markit Purchasing Managers’ Index (PMI) triggered pessimism for the Aussie. The reasons being the Manufacturing PMI lagged behind 52.0 prior to 51.4 and the Services PMI trailing past-52.6 earlier with 51.9 marks, which in-turn resulting 51.8 Composite PMI versus 52.5 previous.
Not only headline PMIs but details surrounding business activity, new orders and employment were also downbeat and extended the Australian Dollar’s (AUD) weakness. Further, Australia’s Skilled Vacancies for June also deteriorated.
Given the Reserve Bank of Australia’s (RBA) emphasis on the unemployment rate, disappointment from forward indicators grab major attention and drive the AUD down than otherwise.
Investors may now keep an eye over the US-China trade developments amid lack of major data/events scheduled for publishing.
Technical Analysis
While 21-day moving average (DMA) around 1.0464 acts as an immediate upside barrier for the pair, 1.0540 and 1.0550/55 seem key resistances to watch should the quote rises. On the flip side, 1.0383/80 area comprising present month low and March 20 high can limit near-term price declines ahead of highlighting March month bottom close to 1.0275.
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