AUD/NZD breaches 200-DMA support on Aus retail trade

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The Australian dollar halted a 5-day winning streak and turned negative versus its OZ sister following the release of below estimates Australia’s retail turnover figures.

    AUD/NZD slips on Aussie weakness

    Currently, the AUD/NZD pair trades -0.10% at fresh session lows of 1.0917, failing to hold at higher levels. The cross in the AUD/NZD erased previous gains and extends losses after the weaker than expected Aus retail sales data dented the sentiment around the AUD/USD pair, which eased-off 3-month tops.

    The retail trade rose 0.3% in Jan, following no growth (0.0%) reported in Dec and a rise of 0.4% in Nov. Markets had predicted a growth of 0.4% in Jan.
    Moreover, the Kiwi remains better bid as the recent poor US data continues to keep the greenback broadly undermined. Hence, the gains in the NZD/USD pair also add to the downside in the cross.

    AUD/NZD Levels to watch

    The pair finds the immediate resistance at 1.0933/35 psychological (daily pivot/ 1h 20-SMA) above which gains could be extended to the 1.0970/80 psychological (levels/ daily R1). On the flip side, the immediate support located at 1.0876 (1h 50-SMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 1.0841/30 (10-DMA/ 1h-200-SMA).
    For more information, read our latest forex news.

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