- Strong retail sales and trade balance numbers from Australia reversed earlier declines.
- China data and the US-China trade negotiation in focus now.
AUD/NZD is taking bids around 1.0470 during the early Asian session on Wednesday. The quote recently grew nearly 30 pips to the intra-day high of 1.0480 after Australian retail sales and trade balance data beat market consensus. Investors may now focus on China data and a news report from the Washington meeting between the US-China lawmakers for fresh impulse.
Australia’s seasonally adjusted retail sales surpassed +0.2% forecast by rising to +0.8% versus +0.1% during February whereas trade balance rose to +4,801 million against +3,800 million expected and +4,549 million prior during the same month. Further, exports register +0.0% mark compared to 5.0% previous reading while imports contract with -1.0% figure from +3.0% prior.
Traders earlier focused on better than forecast New Zealand data. The GDT price index grew +0.8% from +0.3% forecast and +1.9% prior whereas ANZ commodity price surpassed -0.3% market consensus with +1.4% figure versus +2.8% earlier.
Having witnessed New Zealand and Australian data, traders may now focus on China’s Caixin services purchasing managers’ index (PMI) as the dragon nation is among the top customer of both the antipodeans. The private services gauge is likely to increase to 52.3 from 51.1 during March month.
Additionally, developments surrounding the US-China trade deal will also be in highlight as Chinese delegates led by Vice Premier Liu He will arrive in Washington for the next round of trade talks on Wednesday.
AUD/NZD Technical Analysis
Failure to surpass 1.0500 resistance-confluence comprising eight-month-old descending trend-line and 100-day simple moving average (SMA) highlights the importance of 1.0400 as immediate support. Should the quote slips under 1.0400, 1.0370 and 1.0310 could gain sellers’ attention.
On the upside, a successful break of 1.0500 resistance-confluence could propel prices to 1.0540 before challenging 61.8% Fibonacci retracement of it’s August 2018 to January 2019 decline, at 1.0600. However, 1.0665 and 200-day SMA level of 1.0700 may question bulls’ strength then after.
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