AUD/NZD: Sellers keep lurking around 100-day EMA
- Australia’s ANZ Job Advertisements surge to 5-month high after testing the multi-year low in the previous month.
- The US-China trade tensions remain elevated.
- RBA’s recent shift in policy statement also helps the AUD.
Despite witnessing a strong recovery into Australia’s ANZ Job Advertisement growth, the AUD/NZD pair still trades below a 100-day exponential moving average (EMA) as it takes the rounds to 1.0525 during early Monday.
The ANZ Job Advertisements dropped to a multi-year low of -8.2% (revised) during its previous release but rose back to +4.6% in the month of June.
The Australian Dollar (AUD) benefited on Friday as upbeat employment data from the US boosted global trade sentiment. Another risk barometer, the 10-year US treasury yield, also grew 8 basis points (bps) on Friday.
It should also be noted that Reserve Bank of Australia’s (RBA) lack of policy guidance pushed investors towards expecting a halt in recent dovish bias by the Aussie central bank and helped the AUD as well.
The risk tone remains under pressure during early-day after the US President Donald Trump’s everlasting criticism of the Fed’s monetary policy and also as China’s SCMP raising doubts on the US-China trade ceasefire.
With a lack of major data/events on the economic calendar, investors might emphasize the trade related news as China is the world’s largest commodity user and have a great influence over the Antipodeans.
Technical Analysis
A sustained break of 1.0540 level comprising 100-day EMA can trigger the pair’s upside towards the mid-June high of 1.0591 whereas 200-day EMA level of 1.0586 and May-end tops surrounding 1.0635 can please buyers afterward.
On the downside, 1.0500 and July 01 high near 1.0470 can entertain sellers ahead of pleasing them with 1.0425 and 1.0400 supports.