#AUDNZD @ 1.07740 has shown a wild swing as Australian inflation has delivered a meaningful decline. (Pivot Orderbook analysis)

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• AUD/NZD has shown a wild swing as Australian inflation has delivered a meaningful decline.
• The Australian inflation has dropped to 6.9% while the street was expecting an increment to 7.3%.
• This week, Caixin Manufacturing PMI is of utmost importance, which is seen lower at 48.9.

The pair currently trades last at 1.07740.

The previous day high was 1.0819 while the previous day low was 1.0773. The daily 38.2% Fib levels comes at 1.0801, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0791, expected to provide resistance.

The AUD/NZD pair has displayed a wild swing in a 1.0764-1.0787 range in the Asian session as the Australian Bureau of Statistics has reported lower-than-projected Australian inflation data. October’s Consumer Price Index (CPI) report has shown a decline in the inflation rate to 6.9% while market participants were expecting an increment in the inflation rate to 7.4%.

A decline in inflation is expected to provide a sigh of relief to Reserve Bank of Australia (RBA) policymakers. The Australian central bank was extremely worried as inflationary pressures were not showing any sign of exhaustion earlier. The street was expecting that RBA Governor Philip Lowe would be forced to return to 50 basis points (bps) rate hike structure to curtain galloping inflation.

As the inflation rate has slowed down below 7.0%, the RBA might continue its current rate hike pace of 25 bps to keep economic prospects alive alongwith the mission of bringing price stability.

Meanwhile, investors are keeping an eye on development over public protests in China. Anti-Covid lockdown protest by the general public in a state of anger and frustration has resulted in weaker economic projections. This has kept the antipodeans in the grip of bears this week.

Apart from that, Thursday’s Caixin Manufacturing PMI data will remain crucial. The economic data is seen lower at 48.9 than the prior release of 49.2.

On the New Zealand front, the number of Building Permits has shown a negative growth of 10.7% vs. expansion of 2.4% as expected and the prior release of 3.6%. Accelerating interest rates by the Reserve Bank of New Zealand (RBNZ) might be responsible for a decline in the economic catalyst.

Technical Levels: Supports and Resistances

AUDNZD currently trading at 1.0777 at the time of writing. Pair opened at 1.079 and is trading with a change of -0.12 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.0884, 50 SMA 1.1088, 100 SMA @ 1.1109 and 200 SMA @ 1.1018.

The previous day high was 1.0819 while the previous day low was 1.0773. The daily 38.2% Fib levels comes at 1.0801, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0791, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0769, 1.0748, 1.0723
• Pivot resistance is noted at 1.0815, 1.084, 1.0861

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