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FxWirePro: AUD/NZD upside finds stiff resistance at daily cloud, outlook bearish

AUD/NZD chart - Trading View 

AUD/NZD has erased most of the day's losses and was trading largely unchanged at 1.0779 at around 09:30 GMT.

The pair edged higher from session lows at 1.0743 and has retraced into daily cloud, 55-EMA also offers strong support.

The antipodeans buoyed after upbeat data. That said, souring market risk sentiment keeps trades subdued.

Australia Unemployment Rate fell to 5.1% missing forecasts at 5.5%, while the Employment Change rallied past +30.0K forecasts and -30.6K previous readouts to +115.2K during May.

RBA Governor Philip Lowe's sober comments as he pushed for the need for further easy money while citing inflation and wage growth concerns, weighed on the Aussie.

On the other side, New Zealand Q1 GDP swept past forecasts at 0.05% and printed at 1.6% in three months through to March, avoiding a second recession and bringing forward expectations for tighter monetary policy.

Annual GDP rose 2.4% in the first quarter, beating expectations for a 0.9% rise. Australia and New Zealand Banking Group( ANZ) now forecasts that the RBNZ would raise the Official Cash Rate as soon as in Feb 2022 (earlier forecasted in Aug 2022).

AUD/NZD bounce off channel base has been capped at daily cloud. Breakout above required for further upside.

Overbought conditions could drag the pair lower. Dip till 200-DMA (1.0723) likely. Violation at 200-DMA will negate any further upside.

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