AUD/NZD Price Analysis: Bears keep reins even as NZ data probes downside below 1.1200
- AUD/NZD pauses the recent downside moves but remains pressured at one-week low.
- New Zealand’s trade numbers came downbeat for the second quarter (Q2).
- 10-DMA guards immediate upside, 100-DMA appears a tough nut to crack for bears.
- Impending bear cross on MACD, a clear break of 10-DMA favor short-term sellers.
AUD/NZD pauses the previous day’s bearish performance around a one-week low after witnessing downbeat New Zealand (NZ) trade data during Friday’s Asian session. In doing so, the cross-currency pair probes the bears but stays far from the buyer’s radar.
As per the latest trade numbers from Statistics New Zealand, the Terms of Trade fell 2.4% in the second quarter (Q2), reported Reuters. The details mentioned that Export prices rose 3.7 percent, while imports increased 6.5 percent. Economists were expecting the index to show a 1.3 percent fall, with export prices rising 0.8 percent and imports up 2.5 percent, according to a Reuters poll.
That said, the quote’s successful trading below the 10-DMA, around 1.1185, directs AUD/NZD towards the early August swing high near 1.1125.
Following that, the 100-DMA and the previous monthly low, respectively near 1.1050 and 1.0990, will be crucial to watch.
Alternatively, recovery moves need a successful run-up beyond the 10-DMA hurdle surrounding 1.1185 to convince AUD/NZD buyers.
Even so, the latest swing high and an upward sloping resistance line from May, around 1.1255, will be a major challenge for the AUD/NZD bulls.
AUD/NZD: Daily chart
Trend: Further weakness 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.
