- AUD/NZD extends downside on strong New Zealand retail sales.
- AUD/NZD is currently trading at 1.0400, with a post data low of 1.0379 from an opening high of 1.0425.
Overall, the Aussie is under pressure and the bird less so but is still subject to the central bank divergence theme and is at risk ongoing uncertainty surrounding the Sino/US trade relations. Both currencies managed to recover a touch on Friday, although the bird was more impressive than the Aussie and should retail the upper hand at the start of the week.
Today, NZ Q4 retail sales data came out ahead of the official market open. The data was important because the report will help shape forecasts for the key GDP data on 21 March. The data arrived +1.7% Q/Q vs the expected 0.5% and 0.3% prior revised from 0.0% – The result came in as the highest since Q1 of 2017.
Sino/China trade latest:
“President Trump, citing progress in U.S.-China trade talks, said he is looking at extending a deadline to raise tariffs and hoping to meet next month with Chinese leader Xi Jinping to complete a broad trade agreement,” – WSJ.
US President Trump on Twitter regarding the trade talks with China:
I am pleased to report that the U.S. has made substantial progress in our trade talks with China on important structural issues including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues.
AUD/NZD levels
- Support: 1.0319
- Resistance: 1.0526
The cross has the horizontal support line around 1.0370 est. since June 2017, which was last tested again on 13th Feb 2019 marking a fresh swing low at 1.0367 – which guards a run to 1.319. On the flipside, bulls are looking towards an upside target that is located at the 38.2% Fibo target in the 1.0560s. Technicals are neutral for the time being, but a break of either said support line or, on the flipside, R1 at 1.0465, should lead the bias one way or another.
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