- AUD/NZD trades near 1.0430 during early Asian trading on Thursday.
- The pair observed the latest details from NZ, AU and China but remained overall positive towards confronting 1.0460 resistance-line.
- On the break of 1.0460, 1.0490 and 1.0530 can entertain bulls whereas 1.0385 and 1.0365 seem immediate supports to watch.
AUD/NZD is on bids around 1.0430 during early Thursday. The pair remains volatile as a slew of data from New Zealand, Australia and China played their roles. Though, quote’s recent recovery towards challenging a five-week-old trend-line resistance, at 1.0460, continues.
It all started with the early-day release of January month New Zealand ANZ business confidence reading that dropped to -30.9 from -24.1 earlier. Markets gave little reaction to the figure before the Australian Bureau of Statistics announced fourth quarter (Q4) 2018 reading of private capital expenditure. The reading pleased Aussie buyers by beating 0.5% forecast and -0.5% prior with 2.0% growth. As a reaction, the pair rallied to an intra-day high of 1.0460 that’s also a resistance-line figure.
The Australian Dollar (AUD) couldn’t remain strong for long as China’s NBS manufacturing purchasing manager index (PMI) dragged the currency down. The February month release of Chinese manufacturing PMI lagged behind 49.5 market forecast and previous reading by declining to 49.2. The figure is below 50 mark, that differentiates between expansion and contraction, for the third consecutive month.
Other than the details mentioned above, developments surrounding trade negotiations between the US and China also directed the pair moves. During Wednesday, the US trade representative Robert Lighthizer signaled tough road for future talks by highlighting demands concerning China’s structural changes. Though, the US trade representatives’ office, later on, calmed the pessimists by announcing the suspension of scheduled tariffs on China until future notice.
While progress on trade can continue offering important details to forecast near-term pair moves, Friday’s February month Caixin Manufacturing PMI for China will become important to watch. The private manufacturing gauge is likely to strengthen a bit towards 48.7 compared to 48.3 previous month reading.
AUD/NZD Technical Analysis
Unless successfully clearing a month old descending trend-line around 1.0460, the pair is less likely to aim for 1.0490 and 1.0530 resistances.
In case the pair continues to respect the resistance-line, 1.0385, 1.0365 and 1.0300 can please bears.
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