AUD/NZD loses key levels on quiet Monday, focus on Australian GDP data

Source Fxstreet
Jun 3, 2024 18:49
  • On Monday, the AUD/NZD dipped below key technical levels, with the 100 and 200-day SMAs breached.
  • Current focus is on GDP data from Australia, expected to remain steady.
  • New Zealand’s manufacturing activity Q1 data on Friday will be closely watched.

The AUD/NZD echoed a bearish technical outlook on Monday, falling below key levels towards 1.0805 as markets await mid-tier data from both nations on a quiet economic schedule at the beginning of the week.

In Australia, markets will anticipate Wednesday's Gross Domestic Product (GDP) data. A steady growth of 0.2% QoQ is expected, while a 1.2% YoY rate is projected, a slight dip compared to the Q4 YoY rate of 1.5%. That being said, the AUD’s losses may be limited, thanks to the strong Australian Q1 CPI inflation data and another robust April reading, which hints at the Reserve Bank of Australia (RBA) being one of the last G10 central banks to cut rates in this cycle.

On the other hand, New Zealand will focus on releasing its Q1 manufacturing activity data on Friday. Should the manufacturing output reflect the same upward trend, it might further slow the Reserve Bank of New Zealand’s RBNZ's rate cuts. The market now forecasts a 75% probability of the first cut happening as late as November.

AUD/NZD technical analysis

Technical indicators have turned bearish. On Monday, sellers oversaw the breaching of the 100 and 200-day Simple Moving Averages (SMAs). The RSI heads towards the oversold territory, echoing a similar sentiment, while the MACD histogram continues to confirm this downward momentum with its persistent formation of red bars.

Despite the bearish patterns unfolding, the focus will be whether the downward trend can be sustained or if there will be an upward correction as markets continue to assess the upcoming economic data releases.

AUD/NZD daily chart

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Copper Long-term forecast: Will Copper Price Expected To Soar In 2023?The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
Author  Mitrade
The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
placeholder
Bitcoin CME gaps at $35,000, $27,000 and $21,000, which one gets filled first?Prioritize filling the $27,000 gap and even try higher.
Author  FXStreet
Prioritize filling the $27,000 gap and even try higher.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
placeholder
Bitcoin Hasn’t Reached Bull Cycle Top Yet, Quant Explains WhyAccording to the trend in an on-chain indicator, an analyst has explained how Bitcoin may still need to reach the top of the current bull cycle.
Author  NewsBTC
According to the trend in an on-chain indicator, an analyst has explained how Bitcoin may still need to reach the top of the current bull cycle.
placeholder
Spot Ethereum ETFs To Launch In 8 Days, Bloomberg Expert ConfirmsAfter months of anticipation, the launch of spot Ethereum ETFs in the United States appears to be imminent as the US Securities and Exchange Commission (SEC) has reportedly requested that Ethereum ETF issuers submit their final S-1 filings, including fee structures, by Wednesday, July 17.  Ethereum ETFs Hopefuls Gear Up For July 23 Debut Bloomberg […]
Author  Bitcoinist
After months of anticipation, the launch of spot Ethereum ETFs in the United States appears to be imminent as the US Securities and Exchange Commission (SEC) has reportedly requested that Ethereum ETF issuers submit their final S-1 filings, including fee structures, by Wednesday, July 17.  Ethereum ETFs Hopefuls Gear Up For July 23 Debut Bloomberg […]
goTop
quote