AUD/NZD technical analysis: Immediate resistance-lines hold despite weaker than expected New Zealand data
|- New Zealand Business NZ PMI and PPI data came in below market expectations.
- Nearby resistance-line question buyers amid overall weakness of the Australian Dollar (AUD).
AUD/NZD is on the rounds near 1.0545 at the initial Asian session on Friday. The pair refrained from crossing short-term trend-line resistances even if second-tier New Zealand data came in weaker than expected.
New Zealand Business NZ purchasing manager index (PMI) lagged behind 54.5 forecasts to 53.0 but crossed 52.0 prior (revised) during April. The producer price index (PPI) input for the first quarter (Q1) of 2019 dropped -0.9% versus +1.4% expected and 1.6% earlier whereas PPI output for the same period slipped to -0.5% from +0.8% previous readout and +1.3% market consensus.
Despite downbeat data from New Zealand, the quote is yet to clear a downward sloping trend-line stretched since Monday, at 1.0555 now, needless to mention about a failure to cross a week old resistance-line of 1.0565.
As a result, chances of the quote’s dip to 1.0540 and recent low near 1.0520 can’t be denied.
Also, pair’s sustained declines beneath 1.0520 can test the strength of 1.0500 round-figure that also comprises 100-day simple moving average (SMA) on the daily chart.
If at all prices rally beyond 1.0555 and 1.0565 nearby resistance-lines, 61.8% Fibonacci retracement of the downturn since May 09 can question further upside at 1.0600 while 1.0620 and 1.0640 may entertain buyers then after.
AUD/NZD hourly chart
Trend: Negative
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