FxWirePro: AUD/NZD rejected at highs, holds 5-DMA support at 1.0433, weakness only on break below

• 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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