- Weaker than expected New Zealand ANZ Commodity Price and China’s Caixin Services PMI confronts upbeat Aussie data.
- Trade tension exerts downside pressure on the pair.
Although latest statistics from New Zealand and China have been on a back foot, the AUD/NZD pair fails to stretch the previous upside as it trades near 1.0466 during early Wednesday.
New Zealand’s ANZ Commodity Prices lagged below 0.1% revised prior by declining -3.9% during June whereas China’s Caixin Services Purchasing Managers’ Index (PMI) for the same month lagged behind 53.0 forecast to 52.0.
On the flip side, Australia’s Trade Balance grew more than 5,250 million market consensus to 5,745 million with Building Permits crossing 0.0% expectations to 0.7% MoM for the month of May.
Being the gauge of market sentiment, the Australian Dollar (AUD) might be bearing the burden of the latest US-EU trade tussle coupled with global support for monetary policy easing. The same could also be witnessed in the macro risk gauge, 10-year treasury yields from the US, as they remain below 2.0% to 1.953% by the press time.
With major details out and loud, investors might focus more on political/trade headlines for fresh impulse.
Technical Analysis
Pair’s dip beneath the latest low of 1.0426 can fetch the quote to 1.0400 mark comprising multiple bottoms during late-March while 21-day exponential moving average (21-D EMA) level of 1.0506 can act as immediate resistance.
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