#AUDNZD @ 1.14354 remains on the front foot, reverses the previous day’s pullback from nine-year high. (Pivot Orderbook analysis)

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• AUD/NZD remains on the front foot, reverses the previous day’s pullback from nine-year high.
• Australia Retail Sales came in better than forecast in August.
• Market sentiment dwindles amid recession woes, hawkish Fedspeak.
• Headlines from China, Europe becomes the key for near-term directions as bulls struggle of late.

The pair currently trades last at 1.14354.

The previous day high was 1.1461 while the previous day low was 1.1372. The daily 38.2% Fib levels comes at 1.1406, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1427, expected to provide support.

AUD/NZD remains firmer around 1.1430, picking up bids of late, as Australia’s Retail Sales favored buyers during early Wednesday. In doing so, the cross-currency pair also ignores the downbeat headlines from China and fears of recession while poking the nine-year high, marked on Monday.

Australia’s Retail Sales rose 0.6% MoM versus 0.4% expected and 1.3% prior, which in turn allowed the Australia dollar (AUD) to cheer hopes of faster rate hikes from the Reserve Bank of Australia (RBA).

On the other hand, the latest comments made by Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr and New Zealand’s Finance Minister (FinMin) Grant Robertson, on Tuesday, also favored the AUD/NZD buyers.

RBNZ’s Orr said that the central bank still had some work to do but the tightening cycle was already very mature. After him, “The global economy is a tough place to be at the moment. There are still issues coming out of Europe, obviously, with the war in Ukraine, issues in China,” NZ FinMin Robertson said in an interview on state-owned TVNZ, per Reuters.

Above all, fears emanating from European energy crisis and China’s zero-covid policy seem to challenge the AUD/NZD bulls. It should be noted that the World Bank’s (WB) downbeat economic forecasts for China and chatters that the dragon nation called key market players to defend the equities also printed vulnerabilities in the economy of the biggest customer of Australia.

Overbought RSI conditions challenge the AUD/NZD bulls targeting the late 2013 peak surrounding 1.1660.

Technical Levels: Supports and Resistances

AUDNZD currently trading at 1.1432 at the time of writing. Pair opened at 1.1407 and is trading with a change of 0.22 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.125, 50 SMA 1.1164, 100 SMA @ 1.1102 and 200 SMA @ 1.0932.

The previous day high was 1.1461 while the previous day low was 1.1372. The daily 38.2% Fib levels comes at 1.1406, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1427, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.1366, 1.1325, 1.1277
• Pivot resistance is noted at 1.1455, 1.1502, 1.1543

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