#AUDNZD @ 1.10928 is eyeing more gains post overstepping the critical hurdle of 1.1100. (Pivot Orderbook analysis)

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• AUD/NZD is eyeing more gains post overstepping the critical hurdle of 1.1100.
• In addition to weak labor data, higher inflation consensus is joining as a headwind for the RBA.
• RBNZ sees that inflationary prices may top sooner.

The pair currently trades last at 1.10928.

The previous day high was 1.1102 while the previous day low was 1.1022. The daily 38.2% Fib levels comes at 1.1071, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1053, expected to provide support.

The AUD/NZD pair is struggling to surpass the immediate hurdle of 1.1100 in the Tokyo session as investors are awaiting the release of the Australian inflation data. On a broader note, the asset is oscillating in a 1.1073-1.1100 range after a juggernaut rebound.

It seems that out of the two antipodeans, an unprecedented third term for China’s XI Jinping in power supported the aussie bulls. Well, the event has triggered the risk of a further slowdown in the Chinese economy as China’s Jinping could continue the no-tolerance Covid-19 approach.

This week, the event of the Australian Consumer Price Index (CPI) release will be keenly watched for taking cues about the likely monetary policy action by the Reserve Bank of Australia (RBA), which will take place next week. As per the projections, the headline inflation will accelerate to 7.0% vs. the prior release of 6.1% on an annual basis. On a quarterly basis, the plain-vanilla CPI could decline to 1.5% against the prior print of 1.8%.

It is worth noting that Australia’s employment data, released last week, was extremely poor, and now higher consensus for inflationary pressures could make the job for RBA Governor Philip Lowe more cumbersome.

On the NZ front, comments from Reserve Bank of New Zealand (RBNZ)’s Chief Economist, Paul Conway is hopeful that inflationary pressures are peaked now. He believes that evidence is available citing a cool-off in price pressures. Housing prices are declining, which could slow down consumption. He further added that China is no longer the deflationary force it once was.

Technical Levels: Supports and Resistances

AUDNZD currently trading at 1.1092 at the time of writing. Pair opened at 1.1081 and is trading with a change of 0.1 % .

The pair is trading below its 20 Daily moving average @ 1.1245, below its 50 Daily moving average @ 1.1222 , below its 100 Daily moving average @ 1.1142 and above its 200 Daily moving average @ 1.0991

The previous day high was 1.1102 while the previous day low was 1.1022. The daily 38.2% Fib levels comes at 1.1071, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1053, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.1035, 1.0989, 1.0956
• Pivot resistance is noted at 1.1114, 1.1148, 1.1194

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