- AUD/NZD slumps over 0.50% amid dismal Australia data and unchanged RBA.
- Aussie beaten across the board after retail sales missed expectations and trade balance posted deficit for the month of December.
- Australia retail sales fell 0.5 percent, missing market expectations for a 0.2 percent drop.
- Further, the trade balance recorded a deficit of AUD 1.36 billion in December compared to the AUD 0.2 billion surplus.
- RBA stood pat as expected, there were not major surprises.
- Technical studies are bearish. RSI and Stochs are biased lower. MACD has shown a bearish crossover on signal line.
- Price action has slipped below 200-DMA and we see scope for further weakness. Next bear target lies at 61.8% Fib at 1.0721.
- Focus now on Reserve Bank of New Zealand’s (RBNZ) monetary policy meeting scheduled on February 7.
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-NZD-finds-strong-support-at-10950-20-DMA-good-to-go-short-on-break-below-1124222) has hit TP2.
Recommendation: Bias lower, book partial profits, trail stop loss to 1.0850, hold for further downside.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
