AUD/NZD disregards NAB, markets already geared for US inflation
- Aussie reaction to NAB surveys limited in the early Tokyo markets.
- Thin macro schedule keeping pairs in a sentiment pattern.
The AUD/NZD is off its overnight session high, but action has been halting and the pair is now testing near 1.0785 following a mixed bag from Australian data. This week is shaping up to be on the thin side for macro data releases and the US inflation numbers due Tuesday are ruling the headlines.
Aussie Home Loans numbers for January were a miss, coming in at -1.1%, missing the expected -0.1% forecast and showing a smaller recovery than most hoped from the previous reading of -2.3%. The National Austalia Bank’s Business Conditions reading for February came in at 9 square on expectations, but still a decline from the previous reading of 12.
Little else remains on the calendar for the Aussie or the Kiwi until the low-tier Current Account figure for New Zealand at 21:45 GMT Tuesday, with the Aussie Westpac Consumer Confidence Survey results afterward at 23:30 GMT.
The pair is running into resistance from the 34-day EMA at 1.0788, and a failure to close above the indicator could see the AUD/NZD trading back into February’s lows, currently providing support from 1.0655. The 200-day SMA is resting above at 1.0852 keeping the pair in bearish territory, and H4 candles show support coming from last Friday’s swing low at 1.0705.