- AUD/NZD picks up bids to probe two-day downtrend after Australia, New Zealand statistics.
- Australia’s first monthly inflation data, ANZ sentiment figures for September teased buyers.
- Cautious mood, firmer yields challenge the upside momentum.
AUD/NZD extends rebound from the intraday low after Australia and New Zealand both flashed important data during early Thursday. That said, the cross-currency pair takes the bids to 1.1390 by the press time.
Australian Bureau of Statistics (ABS) released the first ever monthly Consumer Price Index (CPI) for July and August. On the other hand, Australia and New Zealand Banking Group (ANZ) unveiled September’s Activity Outlook and Business Confidence figures for New Zealand.
Australia’s CPI rose 7.0% and 6.8% in July and August, respectively. Further, ANZ Business Confidence improved to -36.7 versus -52.1 expected and -47.8 prior whereas the Activity Outlook gauge also rose to -1.8% from -6.3% market forecasts and -4.0% previous readings.
It should be noted, however, that the market’s sour sentiment and fears surrounding China, Australia’s biggest customer, test the AUD/NZD buyers.
The People’s Bank of China (PBOC) is another central bank, in addition to the Bank of Japan (BOJ) and the Bank of England (BOE), to defend the domestic currency, namely the yuan. It’s worth noting that the PBOC has recently intervened multiple times in the market and is likely to do so today as well as to defend the yuan amid fears of economic slowdown, led by the covid-led lockdowns.
It should be noted that the BOE’s bond-buying triggered the market’s risk-on mood and drowned the yields the previous day. That said, the US Treasury bond yields recovered and the S&P 500 Futures printed mild losses by the press time, probing the AUD/NZD pair buyers.
Technical analysis
Unless breaking a three-week-old support line, near 1.1330 by the press time, AUD/NZD remains on the way to October 2013 high near 1.1580.
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