FxWirePro: AUD/NZD extends break above 55-EMA, hits weekly high at 1.0799

AUD/NZD chart - Trading View 

Spot Analysis:

AUD/NZD was trading 0.13% higher on the day at 1.0781 at around 07:30 GMT.

Previous Session's High/ Low: 1.0791/ 1.0741

Previous Week's High/ Low: 1.0813/ 1.0719

Fundamental Overview:

Antipodeans subdued amid cautious market mood and mixed economic data.

Australia’s headline Employment Change missed forecasts with -30.6K versus +15K forecast and 70.7K prior.

However, the Unemployment rate printed at 5.5% level beating expectations at 5.6% and similar previous readouts.

Further, Australia Consumer Inflation Expectations for May eased below 3.6% market consensus to 3.5%, versus 3.2% prior.

Also, the People’s Bank of China (PBOC) matched the wide market forecast and kept its benchmark rate at 3.85%. The five-year LPR was also left unchanged at 4.65% in May.

On the other side, New Zealand government on Thursday unveiled its annual budget, which indicated the economy is doing much better than forecast after the pandemic first hit.

Treasury reports indicate the nation’s economy is expected to grow by 2.9% this year and by 4.4% in 2023. That follows an overall economic contraction of 1.7% last year.

Following the release of the Federal Budget, S&P Global Ratings, lauding the nation’s economic recovery said that New Zealand is recovering faster than most advanced economies.

Technical Analysis:

- AUD/NZD grinds higher in a rising channel pattern and price action has bounced off channel base support

- Price action has retraced brief dip below 200-DMA and has edged above 55-EMA 

- Stochs and RSI are now biased higher and RSI has edged above the 50 mark

- Major trend on the weekly charts remains bullish. Price action is extending choppy trade around 21-W EMA

- Breakout above daily cloud will propel the pair higher. Scope for retest of yearly high at 1.0947