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).
