FxWirePro: AUD/NZD breaks below 200-DMA, on track to 61.8% Fib at 1.0781

• 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.

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