FxWirePro:AUD/NZD hovers around cloud top, break above to see more upside

AUD/NZD chart - Trading View

AUD/NZD was trading 0.33% higher on the day at 1.0494 at around 08:20 GMT.

Retrace in the pair has held support at 50-DMA and price action has broken above 21-EMA.

The pair is currently hovering around daily cloud top resistance and decisive break above will fuel further gains.

Upbeat Australia inflation data, risk-on market mood and stronger commodity markets support the antipodeans.

Data released earlier today showed Australia Consumer Price Index (CPI) came at 0.8% in line with market expectations on a quarterly basis. 

The Reserve Bank of Australia (RBA) Trimmed Mean CPI reported at 0.7% QoQ basis, beating the market consensus of 0.5%. 

Higher than expected inflation readings raised market expectations that the RBA will raise the cash rate before 2024. 

Technical indicators are turning bullish. RSI has edged above the 50 mark and is biased higher. MACD is on verge of bullish crossover on signal line.

Support levels - 1.0463 (21-EMA), 1.0421 (50-DMA), 1.04

Resistance levels - 1.0509 (Cloud top), 1.0521 (110-EMA), 1.0585 (Trendline)

Summary: AUD/NZD pivotal at daily cloud. Watch out for decisive break above for upside continuation.