AUD/NZD stays below three-week-old trendline despite upbeat China data
- AUD/NZD fails to cheer better than forecast China CPI.
- Doubts surrounding US-China trade deal, dovish RBA minutes keep a tab on pair’s upside.
- Key statistics from New Zealand, Australia awaited for fresh clues.
Although China’s inflation statistics refrain from disappointing Antipodeans, AUD/NZD stays below near-term key resistances line while taking rounds to 1.0750 during early Tuesday.
September month Consumer Price Index (CPI) from China rose past-2.9% forecast to 3.0% on YoY while also crossing 0.7% MoM expectations with 0.9% level. However, the Producer Price Index (PPI) met market consensus of -1.2% Year-on-Year figure versus -0.8% previous readouts.
In addition to the key inflation numbers, the upbeat USD/CNY reference rate by the People’s Bank of China (PBOC), to 7.0708 from 7.0725, also flashed positive signals for the commodity-linked currencies.
However, recently published minutes of the Reserve Bank of Australia’s (RBA) October month monetary policy meeting flashed dovish signals that join doubts over the US-China trade deal to keep disappointing pair buyers.
Moving on, Wednesday’s third-quarter inflation data from New Zealand and Thursday’s Australian employment statistics will be the key for pair traders to watch.
Technical Analysis
Unless breaking the three-week-old falling resistance line, at 1.0770 now, prices are less likely to aim for monthly top nearing 1.0810, needless to mention about the yearly high close to 1.0850. As a result, a 21-day exponential moving average (EMA) level of 1.0720 will be on sellers’ radar ahead of 1.0700 and last week’s bottom surrounding 1.0640.