AUD/NZD stays below three-week-old trendline despite upbeat China data

AUD/NZD fails to cheer better than forecast China CPI.
Doubts surrounding US-China trade deal, dovish RBA minutes keep a tab on pair’s upside.
Key statistics from New Zealand, Australia awaited for fresh clues.

Anil Panchal FXStreet

Although China’s inflation statistics refrain from disappointing Antipodeans, AUD/NZD stays below near-term key resistances line while taking rounds to 1.0750 during early Tuesday.

September month Consumer Price Index (CPI) from China rose past-2.9% forecast to 3.0% on YoY while also crossing 0.7% MoM expectations with 0.9% level. However, the Producer Price Index (PPI) met market consensus of -1.2% Year-on-Year figure versus -0.8% previous readouts.

In addition to the key inflation numbers, the upbeat USD/CNY reference rate by the People’s Bank of China (PBOC), to 7.0708 from 7.0725, also flashed positive signals for the commodity-linked currencies.

However, recently published minutes of the Reserve Bank of Australia’s (RBA) October month monetary policy meeting flashed dovish signals that join doubts over the US-China trade deal to keep disappointing pair buyers.

Moving on, Wednesday’s third-quarter inflation data from New Zealand and Thursday’s Australian employment statistics will be the key for pair traders to watch.

Technical Analysis

Unless breaking the three-week-old falling resistance line, at 1.0770 now, prices are less likely to aim for monthly top nearing 1.0810, needless to mention about the yearly high close to 1.0850. As a result, a 21-day exponential moving average (EMA) level of 1.0720 will be on sellers’ radar ahead of 1.0700 and last week’s bottom surrounding 1.0640.

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.

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