AUD/NZD: Aussie coronavirus woes keep bears hopeful around 1.07000

AUD/NZD fails to extend Friday’s bounce off monthly low, sidelined around 1.0700, amid Monday’s Asian session. In doing so, the quote stays depressed, despite upbeat Aussie PMUI data, amid the coronavirus (COVID-19) crisis in Australia.

Victoria registers no new covid cases during the week but the infection of a primary school student and another two at the aged care homes in Sydney worries the AUD traders. Also negative was the four new local cases from Queensland.

On the positive side, Australia Commonwealth Bank (CBA) Services PMI for June rose past 56.00 expected and prior to 56.8 whereas CBA Composite PMI inched above 56.1 previous readouts to 56.7.

It’s worth noting that the recently grim comments from the Reserve Bank of Australia (RBA) policymakers, versus optimism surrounding the RBNZ’s rate hike, also weigh on the AUD/NZD prices. Additionally, New Zealand’s success over taming the pandemic keeps the Kiwi on the upper hand versus major currencies.

On a broader front, indecision over the Fed’s next moves and optimism surrounding the US economy troubles traders amid a quiet Asian session. That said, S&P 500 Futures drop 0.15% intraday by the press time.

Moving on, China’s Caixin Services PMI for June, expected 55.7 versus 55.1 prior, as well as Aussie Retail Sales for May, likely to confirm 0.1% initial forecast, may offer intermediate moves to the AUD/NZD prices. However, comparatively stronger fundamentals of New Zealand and increasing odds of the RBNZ’s rate hike keep the bears hopeful.

Technical analysis

Sustained trading below 200-DMA, around 1.0725, directs AUD/NZD prices toward May’s low surrounding 1.0600.