Despite the Reserve Bank of Australia (RBA) not taking any action and positive developments in China, AUDNZD at 1.08598 continues to be under pressure and is currently at its lowest level in a week.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• AUD/NZD remains pressured at one-week low despite RBA’s inaction, risk-positive China updates.

The pair currently trades last at 1.08598.

The previous day high was 1.0883 while the previous day low was 1.0844. The daily 38.2% Fib levels comes at 1.0868, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0859, expected to provide support.

AUD/NZD takes offers to refresh intraday low around 1.0850 even after the Reserve Bank of Australia (RBA) matches market forecasts of keeping the benchmark rates unchanged on early Tuesday.

That said, the Aussie central bank keeps the benchmark rate intact at 4.1% but shows readiness to lift the rates as and when necessary to tame the inflation woes.

Not only the RBA’s status quo but headlines from China, a major customer for Australia and New Zealand, also should have put a floor under the AUD/NZD prices but were largely ignored.

That said, China’s biggest reality player Country Garden manages to avoid default by paying $22.5 million US bond interest. It’s worth noting that the Chinese real-estate giant won approval from onshore creditors to extend a private bond payment worth CNY3.9 billion ($536 million).

Elsewhere, China’s Commerce Ministry pledged to support the qualified enterprises to make good use of domestic and overseas listing, as well as bond issuance. On Monday, China’s readiness for opening up the services industry, as well as developments of the manufacturing activities, joined a slew of measures to cut mortgage rates and infuse more liquidity to keep the Asia-Pacific markets hopeful.

It should be noted that upbeat prints of Australia’s S&P Global Composite PMI and Services PMI, to 48.0 and 47.8 versus 47.1 and 46.7 respective priors, also occupy the positive side and prods the AUD/NZD bears.

Against this backdrop, the S&P 500 Futures print mild losses around 4,515, down 0.15% intraday after reversing from a one-month high the previous day, while the US 10-year Treasury bond yields rose two basis points (bps) to 4.20% after the US holiday-driven inaction.

Looking forward, Australia’s Gross Domestic Product (GDP) for the second quarter (Q2) of 2023 and a speech from the outgoing RBA Governor Philip Lowe will be important for clear directions.

A one-month-old rising wedge bearish chart pattern, currently between 1.0840 and 1.0900, keeps the AUD/NZD sellers hopeful.

Technical Levels: Supports and Resistances

AUDNZD currently trading at 1.086 at the time of writing. Pair opened at 1.088 and is trading with a change of -0.18% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.0837, 50 SMA 1.0824, 100 SMA @ 1.082 and 200 SMA @ 1.0804.

The previous day high was 1.0883 while the previous day low was 1.0844. The daily 38.2% Fib levels comes at 1.0868, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0859, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.0855, 1.083, 1.0816
• Pivot resistance is noted at 1.0894, 1.0908, 1.0933

[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.

1. EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
2. EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group

Share this:

• Facebook
• X

Like this:

Like Loading...