AUD/NZD Price Forecast: Looks to extend losses below 1.0750 amid risk-on sentiment and, China trade data
- AUD/NZD is accumulating minor gains in the Asian session.
- Risk-on sentiment weighs on the cross.
- Aussie surrenders gains after China turns hostile towards economic dialogue.
The depreciating Aussie kept gains in possession for AUD/NZD price in the Asian session. The cross recovered handsomely on Thursday from the lows of 1.0718 to close near 1.0768.
At the time of writing, AUD/NZD is trading at 1.0767, up 0.15% on the day.
The move is exclusively sponsored by the ongoing economic-political animosity between China and Australia. China indefinitely suspended economic negotiation with its Australian counterpart on Thursday.
The spat indirectly benefited the high-risk NZD, as the move is corroborated by a report from ANZ Research, that stated NZD would enjoy much appreciation on global growth optimum and re-opening of the economy on its higher beta valuation in the coming few months.
Meanwhile, the Australian Industry Group (AiG) Australian Performance of Service Index rose to 61 in April from 58.7, which aids some constructive bids for the cross.
Investors are eagerly waiting for the release of the Caixin China General Composite PMI, and Balance of Trade in China, however, the centre of attraction remains the US Nonfarm Payrolls data later in the day.
AUD/NZD additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
