AUD/NZD Jumps to Test Hourly 100-SMA on Aus Data
The Australian dollar spiked higher versus its OZ neighbour in the Asian morning hours, sending AUD/NZD sharply higher towards 1.09 handle on the release of Aus and China macro data.
AUD/NZD extends recovery from 1.0820 region
Currently, the AUD/NZD pair rises 0.26% to 1.0869, easing-off slightly from fresh session highs reached at 1.0876 some minutes ago. Having bottomed out near 1.0825 region, the recovery in the cross gained further traction in the last hour after the AUD bulls were boosted by auspicious domestic retail trades, home sales and trade balance numbers.
Further, the Kiwi also remains slightly bid, receiving a positive ‘rub-off effect’ from its OZ counterpart. While markets appear to have ignored downbeat Chinese services sector activity report, which came in way below expectations. China April Caixin Service PMI came in at 51.8 (prior 52.2) & Composite stood 50.8 (prior 51.3).
Amid holiday-thinned trading in the day ahead, markets now look forward to the US economic releases and the Fed speak for further USD moves, which will eventually impact the cross.
AUD/NZD Levels to watch
The pair finds the immediate resistance at 1.0879/84 (1h 100-SMA/ daily R1) above which gains could be extended to the next hurdle located at 1.0928/77 (daily R2/ 10-DMA). On the flip side, the immediate support located at 1.0812/00 (May 4 Low/ round number). Selling pressure is likely to intensify below the last, dragging the Aussie 1.0746 (multi-week lows).