AUD/NZD Price Analysis: Keeps NZ employment-inflicted losses near 1.0700 after Australia Retail Sales
- AUD/NZD remains pressured despite upbeat Australia Retail Sales for March, bears cheer firmer New Zealand Q1 jobs report.
- Failure to cross the key DMA convergence, bearish MACD signals keep sellers hopeful.
- Ascending trend line from mid-December appears the key support, upside break of multi-month-old resistance line is crucial for bull’s entry.
AUD/NZD takes offers to refresh the intraday low near 1.0690 during early Wednesday. In doing so, the exotic pair ignores upbeat Australia Retail Sales as sellers cheer firmer prints of New Zealand employment numbers for the first quarter (Q1) of 2023.
Australia’s seasonally adjusted Retail Sales for March rose 0.4% versus market expectations of witnessing a 0.2% steady growth number.
On the other hand, New Zealand’s Unemployment Rate reprints 3.4% figures versus an estimated 3.5% whereas the Employment Change rose to 0.8% QoQ compared to 0.4% market forecasts and 0.2% prior.
Apart from the comparatively stronger New Zealand (NZ) data, the quote’s failure to provide a daily closing beyond the key DMA convergence, comprising the 21-DMA and 50-DMA, also keeps the AUD/NZD bears hopeful. On the same line are the bearish MACD signals.
With this, the AUD/NZD price is all set to revisit an upward-sloping support line from December 2022, close to 1.0665 by the press time. However, the pair’s further downside could make it vulnerable to refreshing the Year-To-Date (YTD) low, currently around 1.0590-85.
On the flip side, a daily closing beyond the aforementioned DMA confluence of 1.0770-75 will need validation from a descending resistance line from September 2022, close to 1.0890 at the latest, to retake control.
AUD/NZD: Daily chart
Trend: Further downside 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.
