The AUD/NZD currency pair is experiencing slight fluctuations, currently hovering around 1.0821. Traders are closely watching economic data releases from both Australia and New Zealand throughout the week.
In Australia, the focus is on the upcoming April Consumer Price Index (CPI) and Retail Sales figures. The CPI is expected to show a slight decline to 3.4% year-on-year, while Retail Sales are anticipated to show some improvement. These data points will be crucial in shaping market expectations regarding the Reserve Bank of Australia’s (RBA) monetary policy stance in the near future.
New Zealand, on the other hand, will release its May ANZ business survey data on Tuesday. This data release will provide insights into the country’s economic activity and could influence expectations regarding the next move by the Reserve Bank of New Zealand (RBNZ) in terms of interest rates. While the RBNZ has hinted at a potential rate hike, market analysts are leaning towards a possible rate cut later in the year.
From a technical analysis perspective, the AUD/NZD pair is currently showing a negative trend, with the Relative Strength Index (RSI) in negative territory and the Moving Average Convergence Divergence (MACD) histogram showing downward momentum. However, the pair is trading above its 100 and 200-day Simple Moving Averages, suggesting potential long-term upward momentum. In the near term, the pair is below the 20-day SMA, indicating possible volatility.
Overall, the AUD/NZD pair is facing key economic data releases from both Australia and New Zealand this week, which could impact its price movements. Traders will be closely watching the CPI and Retail Sales figures from Australia, as well as the ANZ business survey data from New Zealand, to gauge the future monetary policy decisions of both the RBA and RBNZ. Technical indicators suggest a mixed outlook for the pair, with short-term volatility expected alongside potential long-term upward momentum.