AUD/NZD fades spike above 200-DMA

AUD/NZD faded spike above 200-DMA level of 1.0711, now trading around 1.0698 after having clocked a high of 1.0741 earlier today.

Retreats from two-month high

The session high of 1.0741 is the highest level for the pair since August 9. The retreat from the session high appears a chart driven move since fundamental data released today remained in favor of the Aussie dollar.

Australia consumer inflation expectations ticked higher to 3.7% in October from the previous figure of 3.3%. Meanwhile, New Zealand ANZ consumer confidence index dropped to 1.6% m/m in October from 2.85.

The focus now is on China trade which is expected to show anoher drop in exports and slowdown in imports growth.

AUD/NZD Technical Levels

The retreat from the session high of 1.0741 followed by a move back below 200-DMA level of 1.0711 could run into immediate support at 1.0662 (5-DMA), under which losses could be extended to 1.0612 (10-DMA) and 1.06 (zero figure) levels. On the higher side, a move back above 1.0711 (200-DMA) could yield a re-test of 1.0736 (previous day’s high) and 1.0741 (session high).