- Australia’s inflation figures for the third quarter could boost the AUD/NZD.
- Worse than expected, New Zealand Trade Balance figures strengthened the kiwi but gave back its gains.
- AUD/NZD: In the 1-hour chart, a break above 1.0500 would open the doors for a 1.0600 test.
The AUD/NZD barely climbs during the Asian session, is up 0.10%, is trading at 1.0485. Futures in Asia are mixed, with the FTSE China A50 and the Hang-Seng futures in the red, whereas the Nikkei 225, Topix, and the S&P/ASX 200 futures record gains.
As the Asian session began, the AUD/NZD dropped to 1.0460 on worse than expected New Zealand macroeconomic data but reversed its course towards current levels once investors dissected data.
The New Zealand Trade Balance deficit widened from $-2139M to $-2171M in September on a monthly basis. Furthermore, Imports rose to $6.495 billion, outpacing Exports which expanded by $4.4 billion, as portrayed by the abovementioned. Both figures were higher than expected.
On Wednesday, the Australia macroeconomic docket will feature the RBA Trimmed Mean Core Price Index, and the Consumer Price Index for the Q3 is estimated at 0.5% and 0.8%, respectively.
AUD/NZD Price Forecast: Technical outlook
The 1-hour chart depicts the AUD/NZD pair is trading within the 1.0450-80 range. The simple moving averages (SMA’s) are below the spot price, suggesting the pair has an upward bias, but as long as it remains below 1.0500 remains at risk of further downside pressure. The Relative Strength Index (RSI) momentum indicator at 58 aims higher, confirming the upward bias.
Nevertheless, a clear break above 1.0500 would open the door for further gains. In that outcome, the first resistance level would be the R3 pivot point level at 1.0521. A breach of the latter could expose 1.0562, followed by 1.0600.
On the flip side, a sustained break below 1.0450 could open the door for AUD/NZD sellers to push the pair towards 1.0400.
AUD/NZD ADDITIONAL LEVELS TO WATCH
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