AUD/NZD struggles around 1.0290 after RBA’s Ellis, New Zealand trade balance

Upbeat comments from RBA’s Ellis couldn’t confront soft consumer survey from Australia and welcome New Zealand trade balance results.
Traders may now seek developments on the US-China trade deal for fresh impulse.

Anil Panchal FXStreet

AUD/NZD trades near 1.0290 during early Tuesday. The pair initially strengthened after the RBA Assistant Governor (Economic) Luci Ellis sound upbeat on employment results. However, better than forecast New Zealand trade balance numbers and soft figures of weekly Australian consumer survey dragged the quote down afterward. With no more data on hand for publishing, traders may turn to the US-China trade deal developments in order to determine near-term market direction.

The AUD/NZD pair remained little changed on Monday as news that the US delegates will reach to China on March 28, followed by Chinese lawmaker’s Washington visit on April 03, pleased antipodeans alike.

At the start of Tuesday, The Reserve Bank of Australia’s Assistant Governor (Economic) Luci Ellis said that the labor market in Australia has 'unambiguously' improved while saying that some of the drags on income are not likely to be permanent. Ellis praised labor market data and conveyed worries over weak income growth weighing on household consumption as she spoke at the housing industry association's industry outlook breakfast.

Following the speech, February month New Zealand trade balance pleased Kiwi buyers. The trade numbers were overall positive as trade balance grew $12 million against $-109 million forecast and $-948 million earlier (revised) on a monthly basis whereas exports (YoY) surged past $4.70 billion consensuses to $4.82 billion and $4.33 billion prior (revised). Imports were down to $4.80 billion compared to $4.90 billion expectations and $5.28 billion revised previous while yearly figures of trade balance slide further to $-6.62 billion from $-6.45 billion revised earlier and $-6.13 billion forecast.

Adding to the pair weakness was the weekly release of Australia’s ANZ / Roy Morgan consumer survey results that showed 111.8 mark versus 111.9 prior.
With no major details/events left for publishing, traders may now concentrate on developments surrounding the US-China trade deal as China is among the consumer of Australia and New Zealand both.

AUD/NZD Technical Analysis

A sustained break of 1.0270 becomes important for the AUD/NZD sellers to aim for September 2016 lows around 1.0230 and then 1.0200 round-figure.

Meanwhile, an upside clearance of immediate descending trendline, at 1.0305 now, could please buyers with 1.0330 and 1.0370.

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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