- ANZ data adds into the post-RBNZ selling of the NZD.
- 50-day SMA still remains as an important upside barrier to watch
The AUD/NZD pair was taking the bids around 1.0430 on early Thursday. The quote rose nearly 150 pips on Wednesday after RBNZ’s dovish bias but couldn’t surpass the 50-day simple moving average (SMA). However, soft ANZ data for New Zealand again push the buyers to challenge the 50-day SMA barrier.
Early on Thursday, Australia and New Zealand banking group (ANZ) released results of its business confidence and activity outlook survey. The business confidence dropped to a four-month low of -38.0 versus -24.3 forecast and -30.9 prior whereas activity outlook lagged behind 11.8% market consensus and 10.5% earlier reading to 6.3% outcome.
With the mixed data, the New Zealand Dollar (NZD) extended its earlier declines post-RBNZ. The Reserve Bank of New Zealand (RBNZ) disappointed global markets by conveying its bearish bias for the official cash rate. During its monetary policy meeting, the central bank said, “the more likely direction of our next OCR move is down”.
Even if the Australian Dollar (AUD) lacks any fresh catalysts to rise much except optimism surrounding the US-China trade deal, Kiwi weakness propels the pair to near-term important resistance.
Looking forward, traders may concentrate on the developments surrounding how the US delegates are welcomed by their Chinese host on the first day of trade negotiations as they reach Beijing for two-day talks on Thursday.
AUD/NZD Technical Analysis
AUD/NZD needs to portray sustained trading beyond 1.0430 comprising 50-day SMA in order to escalate recent recovery towards 100-day SMA level of 1.0510 and then target 1.0540/50 resistance-area.
Alternatively, failure to hold recent upside might not refrain from calling 1.0370, 1.0330 and 1.0300 again as quotes.
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