AUD/NZD Price Analysis: Pulls back to two-day high on upbeat Australia inflation
- AUD/NZD benefits from better than forecast Q4 inflation data from Australia.
- Key Fibonacci retracements, a monthly descending trend line limit further recovery.
- The bears will target August 2019 low during fresh declines.
AUD/NZD takes the bids to an intra-day high of 1.0355 during the Asian session on Wednesday. The pair recently benefited from Australia’s fourth quarter (Q4) inflation data that offered positive surprises and exerted additional weight on the odds of RBA’s rate cut in February monthly meeting.
Read: Breaking: Aussie CPI Q4 Trimmed Mean 0.4% ( vs 0.4% expected and prior 0.4%)
Even so, the pair is yet to successfully cross 23.6% Fibonacci retracement of its current month fall, near 1.0355, not to mention the quote’s inability to take-out the weekly top of 1.0380.
Additionally, a downward sloping trend line since January 01, at 1.0415, followed by 61.8% Fibonacci retracement levels of 1.0430, could keep challenging buyers.
On the flip side, sellers will look for entry below 1.0300 while targeting August 2019 low close to 1.0260.
AUD/NZD four-hour chart