15 Jul 2015
AUD/NZD spikes to 1.1150 on upbeat China data
FXStreet (Mumbai) - The Australian dollar extended its overnight recovery and jolted higher versus its Oz counterpart in the mid-Asian trades, driving AUD/NZD to fresh six day highs beyond 1.11 handle. A slew of better-than expected Chinese macro data boosted the Aussie across the board, thereby lifting AUD/NZD.
AUD/NZD rises from 1.1120
Currently, the AUD/NZD pair trades 0.35%% higher at 1.1138, retracing from fresh six-day highs reached at 1.1150 shortly after the data release. The pair was strongly bid after the Aussie bulls received a fresh impetus from positive Chinese GDP, retail sales and industrial production data which eased concerns over slowdown in China.
In the June quarter China's economy expanded an annualized 7.0%. Markets expected GDP growth to record a 6.8% reading in the June quarter. Industrial Production in China (YoY) came in at 6.8%, above expectations (6%) in June, while the NBS also reported a 10.6% year-on-year rise in retail sales in June, beating the forecast rise of 10.2%.
However, the Kiwi was little affected by the Chinese data as markets shifted focus towards tonight’s GDT price index release which may provide further cues on RBNZ policy stance.
Moreover, Fed Chair Yellen’s testimony along with a series of crucial macro data from the US will also be eyed for further momentum on the cross.
AUD/NZD Technical Levels
The pair has an immediate resistance at 1.1192 levels, above which gains could be extended to 1.1252 levels. On the flip side, support is seen at 1.1101 levels from here it to1.1060 levels.
AUD/NZD rises from 1.1120
Currently, the AUD/NZD pair trades 0.35%% higher at 1.1138, retracing from fresh six-day highs reached at 1.1150 shortly after the data release. The pair was strongly bid after the Aussie bulls received a fresh impetus from positive Chinese GDP, retail sales and industrial production data which eased concerns over slowdown in China.
In the June quarter China's economy expanded an annualized 7.0%. Markets expected GDP growth to record a 6.8% reading in the June quarter. Industrial Production in China (YoY) came in at 6.8%, above expectations (6%) in June, while the NBS also reported a 10.6% year-on-year rise in retail sales in June, beating the forecast rise of 10.2%.
However, the Kiwi was little affected by the Chinese data as markets shifted focus towards tonight’s GDT price index release which may provide further cues on RBNZ policy stance.
Moreover, Fed Chair Yellen’s testimony along with a series of crucial macro data from the US will also be eyed for further momentum on the cross.
AUD/NZD Technical Levels
The pair has an immediate resistance at 1.1192 levels, above which gains could be extended to 1.1252 levels. On the flip side, support is seen at 1.1101 levels from here it to1.1060 levels.