AUD/NZD Price Analysis: Bears attack five-month-old support on NZ Q2 CPI
- AUD/NZD drops to fresh low since early February on strong NZ inflation data.
- New Zealand Q2 CPI crossed market consensus and previous readouts in Q2.
- Bears await daily closing below medium-term support line, 200-DMA becomes the key nearby resistance.
- Oversold RSI near key support backs a bounce but bulls aren’t invited.
AUD/NZD remains on the back foot for the third consecutive day, after bouncing off February lows, down 0.25% intraday around 1.0595 during the early Asian session on Friday.
Strong points of New Zealand’s (NZ) second-quarter (Q2) Consumer Price Index (CPI) data seem to have drowned pair prices as the figures not only crossed upbeat market consensus but also rose past the Reserve Bank of New Zealand’s (RBNZ) forecasts.
Read: Breaking: NZ CPI sends Kiwi nearly 50 pips higher
It should, however, be noted that the oversold RSI conditions and a falling trend line from February 26, near 1.0575, may offer consolidation to the AUD/NZD prices towards revisiting the 1.0655-60 resistance area. Though, any further upside will be tested by the 200-DMA level of 1.0716.
Alternatively, a daily closing below 1.0575 will aim for February’s low, also the yearly bottom, surrounding 1.0540.
In a case where AUD/NZD bears keep ignoring RSI conditions and refrain from bouncing off 1.0540, December 2020 trough close to 1.0410 will be on their radar.
AUD/NZD: Daily Chart
Trend: Corrective pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
