AUD/NZD volatile within daily range ahead of Chinese PMIs

By FXStreet FXStreet (Mumbai) – AUD/NZD failed near daily highs and dropped sharply towards 20-DMA located at 1.0951 amid mixed reactions to the latest official Chinese manufacturing and services PMI.

AUD/NZD recovers 1.0938 lows

The AUD/NZD cross bounced-off lows and spiked to 1.0990 last minutes, only to run through fresh offers at higher levels and revert to red zone near 1.0950 region, where it now wavers. The cross erased gains and fell back into losses on renewed spurt of buying seen around the Kiwi.

While, the losses remain capped as the Australian dollar jumps higher against American counterpart, on the back of renewed risk-on flows ahead of the RBA decision. Australia’s S&P/ASX rallies +2% to 5,266.

Looking ahead, the cross will take cues from the Caixin Chinese PMI surveys and the RBA decision while the sentiment on the equities will also continue to dominate.

AUD/NZD Technical Levels

To the upside, the next resistance is located at 1.10 (round number) levels and above which it could extend gains to 1.0131 (Nov 17 High). To the downside immediate support might be located at 1.0900 (psychological levels) below that at 1.0831 (50-DMA).
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Source:: FX Street