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AUD/NZD bulls battling on the 200 dma

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - AUD/NZD is tracking back to the downside in the latest results in the Chinese economy having released the PMI's, all of which, except the Caixan, failed to impress and leave the outlook dire.

    China's Caixin manufacturing PMI for January arrived at 48.4 vs 48.1 expected and 48.2 last. China's manufacturing PMI for January came in at 49.4 vs 49.6 expected and 49.7 last, with the official non-manufacturing PMI (Jan) at 53.5 vs 54.4.

    The Aussie has rallied while bulls are pinning hopes that the RBA will not need to cut interest rates this year while domestically the economy has, so far, been relatively resilient to the global deflationary conditions, specifically in the commodities sector.

    On the other hand, New Zealand has been performing to an extent that the RBNZ are most certainly going to cut interest rates and this is leaving the cross exposed to the upside in the longer term.

    AUD/NZD levels

    AUD/NZD is technically within a strong reversal of the November downtrend from above 1.1080 having bottomed earlier in the month at 1.0539. The price is supported by the 20 sma on the 4hr chart and until the 200 dma at 1.0902 gives out the bullish bias persists. The pivot is first upside target at 1.0935 ahead of R1 at 1.0971. To the downside, a break of the 200 dma exposes S2 at 1.0859 ahead of S1 at 1.0819.
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