AUD/NZD sees range extension above 1.0950 on solid NZ Trade Balance data


Share:
  • AUD/NZD is expected to extend recovery above 1.0950 despite firmer NZ Trade Balance data.
  • A higher NZ labor cost index will escalate inflation projections further.
  • Weaker Australian monthly Retail Sales might ease some troubles for the RBA.

The AUD/NZD pair has displayed a sharp recovery move after a gap down open to near 1.0926 in the early Asian session. The cross is picking strength despite the release of the upbeat New Zealand Trade Balance data.

Exports in December improved to $6.72B versus the former release of $6.34B, while Imports trimmed to $7.19B from the prior release of $8.52B. The annual Trade Balance landed at -14.46B (New Zealand Dollar) against -14.98B (NZD) released earlier.

For further action, investors will keep an eye on the New Zealand Employment data, which will release on Wednesday. The Employment Change (Q4) is expected to drop to 0.7% from the former release of 1.3%. While the Unemployment Rate is seen unchanged at 3.3%. The New Zealand economy needs to generate significant employment opportunities amid higher interest rates by the Reserve Bank of New Zealand (RBNZ).

Apart from that, the labor cost index data will hog the limelight. The employment bills index (annual) is expected to escalate to 4.45 from the former release of 3.8%. And the quarterly data is seen higher at 1.3% against 1.1% in the prior release. An increment in the labor cost might keep inflation pressures toward the hillside as households would have more liquidity for disposal.

It is worth noting that the New Zealand economy has not shown any sign of inflation softening as the annual Consumer Price Index (CPI) (Q4) escalated to 7.2% from the consensus of 7.1% on an annual basis and a further extension in the retail demand will escalate the inflationary pressures.

On the Aussie front, investors are keeping an eye on Tuesday’s monthly retail sales data, which is expected to display de-growth of 0.3% from the prior release of 1.4%. This might trim troubles for the Reserve Bank of Australia (RBA), which is struggling the cap the stubborn inflation in the Australian economy.

AUD/NZD

Overview
Today last price 1.0944
Today Daily Change -0.0007
Today Daily Change % -0.06
Today daily open 1.0951
 
Trends
Daily SMA20 1.0854
Daily SMA50 1.0742
Daily SMA100 1.0947
Daily SMA200 1.1004
 
Levels
Previous Daily High 1.0969
Previous Daily Low 1.0944
Previous Weekly High 1.0986
Previous Weekly Low 1.0757
Previous Monthly High 1.0792
Previous Monthly Low 1.0471
Daily Fibonacci 38.2% 1.0954
Daily Fibonacci 61.8% 1.096
Daily Pivot Point S1 1.094
Daily Pivot Point S2 1.0929
Daily Pivot Point S3 1.0915
Daily Pivot Point R1 1.0966
Daily Pivot Point R2 1.098
Daily Pivot Point R3 1.0991

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD rebounds from multi-week lows, trades above 1.0750

EUR/USD rebounds from multi-week lows, trades above 1.0750

EUR/USD came under heavy bearish pressure and declined to its weakest level in three weeks below 1.0750 on Friday after the stronger-than-expected Nonfarm Payrolls data. Week-end flows, however, helped the pair erase its daily losses.

EUR/USD News

GBP/USD remains on track to snap three-week winning streak

GBP/USD remains on track to snap three-week winning streak

GBP/USD recovered toward 1.2550 after coming in within a touching distance of 1.2500 in the second half of the day after Nonfarm Payrolls came in at 199,000 for November. Despite the recent rebound, the pair remains on track to snap a three-week winning streak.

GBP/USD News

Gold retreats below $2,020 as US yields push higher

Gold retreats below $2,020 as US yields push higher

Gold broke below its daily range and declined toward $2,010 with the immediate reaction to the upbeat US November jobs report. Although XAU/USD managed to recover toward $2,020, rising US Treasury bond yields triggered another leg lower.

Gold News

Bitcoin price could retrace to $42,000 if US Nonfarm Payroll comes in at 180,000

Bitcoin price could retrace to $42,000 if US Nonfarm Payroll comes in at 180,000

Bitcoin price just like other assets, is highly impacted by the macro-financial developments. This includes the Nonfarm Payrolls (NFP) report released by the BLS of the United States. 

Read more

The week ahead – Fed, ECB and Bank of England rate decisions

The week ahead – Fed, ECB and Bank of England rate decisions

When the Federal Reserve kept rates unchanged back in November for the second meeting in a row there was still the distinct possibility that the final meeting of 2023 would provide the possibility of one more rate rise to round off the year in line with Fed policymakers dot plot forecasts of 5.6%.

Read more

Forex MAJORS

Cryptocurrencies

Signatures