- AUD/NZD has been under continuous selling pressure since June 14.
- The Aussie weigh down by the outbreak of the highly contagious Delta variant and mixed economic data.
- Kiwi remains grounded on RBNZ upcoming policy meeting on rate hikes hope.
AUD/NZD retreats after printing some initial gains on Monday in the Asian session. The pair has been in continuous downside momentum for above one month, after making a high at 1.0824 on June 14.
At the time of writing, AUD/NZD is trading at 1.0454, up 0.27% for the day.
A combination of factors weighing the performance of the Australian dollar against its counterpart.
The Aussie remained pressurized on the extension of lockdown amid renewed COVID-19 jitters and downbeat economic data at home.
Market participants remained cautious amid the worsening domestic coronavirus situation. New South Wales state recorded a nearly 20% jump in fresh coronavirus infections overnight. Australia’s New Home sales plunge 20.5% on monthly basis.
It is worth noting that S&P 500 Futures were trading at 4,452 with 0.22% losses.
On the other hand, Kiwi gained on the better COVID-19 situation. There were no fresh cases recorded in the community as per the Ministry of Health.
The Reserve Bank of New Zealand (RBNZ) is expected to announce interest rates hike in its upcoming policy meeting. The recent Kiwi’s gains were trimmed after not so enthusiastic data.
The BusinessNZ Performance of Service Index edged down 57.9 in July from 58.4 in the previous month.
As for now, traders are waiting for the critical Chinese data to gauge the market sentiment.
AUD/NZD additional levels
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
AUD/USD remains pressured below 0.6900 despite upbeat China PMI
AUD/USD is off the lows but remains pressured below 0.6900 on a big beat on the Chinese Caixin Manufacturing PMI. The US dollar attempts a recovery amid risk-off trading, ahead of US ISM. Strong Aussie PMI, increasing odds of another 50 bps RBA rate hike fails to recall bulls.
USD/JPY sinking towards overnight lows near 135.50
USD/JPY bears move in and the price heads towards overnight lows. The yen regathered below the 24-year peak of 137 vs. the dollar although the gap between a hawkish Federal Reserve and a dovish Bank of Japan continues to weigh heavily on the Japanese currency.
Gold struggles to defend $1,800 as DXY rebounds ahead of US ISM PMI
Gold Price remains pressured around the lowest levels in seven weeks after breaking the key support. US Dollar regains upside momentum, as recession woes favor the greenback. US ISM Manufacturing PMI for June could direct market moves.
Will the ApeCoin price fall to $2 this summer
ApeCoin price shows incoming sell-off signals on the final day of June. It is best to wait for a breach of the invalidation level before counter-trend trading the Ethereum-based NFT Token. Invalidation of the bearish downtrend is a breach above $6.15.
FXStreet Premium users exceed expectations
_XtraSmall.png)
Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!