- AUD/NZD was rejected at session highs at 1.0468, has edged lower to currently trade at 1.0446.
- The antipodeans largely muted post China inflation data which printed pretty much in line with the estimates.
- China June CPI came in at 1.5% y/y vs. inline with forecasts. The month-on-month CPI fell 0.2%, compared to the estimate of a 0.1 % drop.
- Meanwhile, the June PPI printed as expected at 5.5% y/y.
- 'Death Cross' (bearish 50-DMA crossover on 200-DMA) on AUD/NZD keeps scope for downside intact.
- Upside finds minor trendline resistance at 1.0520 (trendline), break above could see further gains.
- On the flipside, decisive breakout below 5-DMA could see resumption of downside, immediate bear target 1.0375 (trendline).
Support levels - 1.0434 (5-DMA), 1.0404 (78.6% Fib retrace of 1.0237 to 1.1018 rise), 1.0375 (trendline), 1.0326 (Jan 31 low)
Resistance levels - 1.0453 (20-DMA), 1.0478 (July 5 high), 1.05
Call update: Our previous call (http://www.econotimes.com/FxWirePro-Death-Cross-on-AUD-NZD-keeps-bias-lower-stay-short-for-10375-789871) has hit TP1.
Recommendation: Watchout for break below 5-DMA for resumption of downside.
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