AUD/NZD Price Analysis: Retreats below 1.0860-70 key hurdle ahead of RBA Minutes, China Q1 GDP
- AUD/NZD eases around six-week high, prints the first daily loss in seven.
- RSI, MACD conditions remain support to pair buyers but pre-data anxiety prods upside momentum.
- Convergence of 200-day EMA, 38.2% Fibonacci retracement level guards immediate upside ahead of multi-month-old descending resistance line.
AUD/NZD bulls take a breather at the highest levels in six weeks as traders await the Monetary Policy Meeting Minutes from the Reserve Bank of Australia (RBA), as well as China’s first quarter (Q1) Gross Domestic Product (GDP) data, during early Tuesday. With this, the exotic pair prints mild losses around 1.0835 by the press time while snapping a six-day uptrend.
It’s worth noting that the quote’s latest pullback fails to gain support from the oscillators as the MACD indicator flashes bullish MACD signals whereas the RSI (14) line grinds higher past the 50 level, not overbought.
Hence, the latest retreat in the AUD/NZD price appears the pre-data anxiety.
That said, a convergence of the 200-day Exponential Moving Average (EMA) and 38.2% Fibonacci retracement level of the pair’s September-December 2022 downside, near 1.0860-70, appears a tough nut to crack for the bulls.
Following that, a downward-sloping resistance line from the last September, close to 1.0930, could act as the last defense of the AUD/NZD bears.
Meanwhile, pullback moves remain elusive unless staying beyond a fortnight-old ascending support line, close to 1.0770 by the press time.
In a case where AUD/NZD remains bearish past 1.0770, the 23.6% Fibonacci retracement level near 1.0710 and multiple lows marked in March around 1.0670-60 can entertain the sellers before directing them to the monthly low of 1.0588.
AUD/NZD: Daily chart
Trend: Further upside 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.
