The currency pair AUDNZD has experienced a slight improvement and is showing signs of recovery from a low point it reached over the course of several weeks.

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• AUD/NZD gains some positive traction and stages a modest recovery from a multi-week low.

The pair currently trades last at 1.07588.

The previous day high was 1.077 while the previous day low was 1.0744. The daily 38.2% Fib levels comes at 1.0754, expected to provide support. Similarly, the daily 61.8% fib level is at 1.076, expected to provide resistance.

The AUD/NZD cross attracts fresh buying near the 1.0745-1.0740 area during the Asian session on Wednesday and sticks to its modest gains following the release of the latest Australian consumer inflation figures. Spot prices, however, lack bullish conviction and currently trade just above the mid-1.0700s.

The Australian Dollar (AUD) gets a minor lift after the Australian Bureau of Statistics reported that the headline CPI accelerated from 4.9% to 5.2% during the 12 months leading up to August 2023. The data reaffirms expectations that the Reserve Bank of Australia’s (RBA) cash rate will peak around 4.55% in the first quarter of 2024, higher than the current 4.10%, and assists the AUD/NZD cross to regain some positive traction.

That said, the lack of any follow-through buying warrants some caution before positioning for any further intraday appreciating move. Investors remain concerned about the worsening economic conditions in China. This, along with persistent worries over a real estate crisis in the world’s second-largest economy, holds back traders from placing aggressive directional bets around the antipodean currencies and caps the AUD/NZD cross.

Furthermore, the recent breakdown and acceptance below the 200-day Simple Moving Average (SMA) suggest that the path of least hurdle for the AUD/NZD cross is to the downside. Hence, any subsequent move up might still be seen as a selling opportunity and runs the risk of fizzling out rather quickly.

Technical Levels: Supports and Resistances

AUDNZD currently trading at 1.0757 at the time of writing. Pair opened at 1.0762 and is trading with a change of -0.05 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.0853, 50 SMA 1.0838, 100 SMA @ 1.0832 and 200 SMA @ 1.0823.

The previous day high was 1.077 while the previous day low was 1.0744. The daily 38.2% Fib levels comes at 1.0754, expected to provide support. Similarly, the daily 61.8% fib level is at 1.076, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0747, 1.0732, 1.0721
• Pivot resistance is noted at 1.0773, 1.0785, 1.0799

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