- New Zealand CPI triggered the pair’s rally but buyers are still cautious ahead of China data.
- A successful break of 200-day SMA can challenge 1.0755/65 area including late-2018 highs.
AUD/NZD trades near 1.0680 during initial Asian sessions on Wednesday. The quote previously surged to the highest since November 2018 after New Zealand CPI disappointed Kiwi buyers. However, buyers booked some of the profits ahead of the key China data-dump.
New Zealand Dollar (NZD) dropped across the board after quarterly consumer price index (CPI) data strengthened expectations of May month rate-cut from the Reserve Bank of New Zealand (RBNZ). The Q1 2019 CPI grew 0.1% versus 0.3% on a quarterly basis while registering a 1.5% increase compared to the 1.7% market consensus on YoY format.
Even if China data is important for antipodeans as a whole, the Australian Dollar (AUD) is likely to benefit more as the dragon nation is Australia’s largest customer.
The data-dump includes first quarter (Q1) 2019 gross domestic product (GDP) and March month annualized figures of retail sales and industrial production releases from the world’s largest industrial player and the biggest commodity user.
Forecasts suggest welcome prints from retail sales and industrial production to confront soft GDP outcome. Retail sales growth could increase to 8.4% from 8.2% while industrial production may also register expansion by 5.9% versus 5.3% prior. Additionally, GDP YoY may soften to 6.3% from 6.4% whereas quarterly growth figures may decline to 1.4% from 1.5% earlier.
In addition to China data, developments surrounding the on-going trade talks between the US and China could also direct near-term moves of the pair.
AUD/NZD Technical Analysis
AUD/NZD needs to hold its break beyond 200-day simple moving average (SMA) level of 1.0685 in order to aim for 1.0755/65 area including late-2018 highs whereas 1.0800 and 1.0840 can entertain buyers then after.
Meanwhile, quote’s dip beneath, 1.0670, including January high, can recall 61.8% Fibonacci retracement of August 2018 to January 2019 downpour, at 1.0600, on the chart.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.