AUD/NZD: Bulls await China data after mixed Australian numbers challenge present optimism
- Concerning surrounding the US-China trade deal and positive data from China question mixed Australian statistics.
- China’s Caixin Manufacturing PMI will be on traders’ radar to confirm NBS reading.
The Australian Dollar (AUD) is taking the bids around 1.0430 versus its New Zealand counterpart (NZD) during early Monday. The recently benefited from upbeat purchasing managers’ index (PMI) from China while the latest mixed data from Australia could do little to question present optimism. Investors await China’s Caixin manufacturing PMI for further direction.
The antipodeans took their clues from the US Treasury Secretary Steve Mnuchin’s tweet conveying constructive progress over the US-China trade talks while first in the four-month 50+ figure from China’s NBS manufacturing PMI and a six-month high non-manufacturing PMI further pleased the buyers.
As there were no major details from New Zealand, traders largely concentrated on the AU data off-late. Among them, TD Securities Inflation figure rose to 0.4% in March from 0.1% whereas the National Australia Bank's business confidence index fell to 0 from 2 index points. On the other hand, business conditions index beat the forecast of 2 by a big margin as the gauge rose to +7 against +4 previous.
The upcoming data of China’s Caixin manufacturing PMI is less likely to deviate from 49.9 prior.
It should be noted that while mixed data could challenge the Aussie optimism, positivity concerning the trade deal for its largest consumer China might favor the Australian Dollar (AUD).
AUD/NZD Technical Analysis
AUD/NZD needs to rise past March 27 high around 1.0455 in order to challenge the 1.0500 resistance-confluence comprising 100-day SMA and a downward sloping trend-line since August 2018. Though, pair’s ability to surpass 1.0500 enables it to claim 1.0550 resistance.
Alternatively, 1.0400 round-figure, 1.0370 and 1.0340 could entertain sellers during the pair’s pullback ahead of pleasing them with 1.0300 and March month low around 1.0270.