AUD/NZD taking back control on Aussie retail sales miss

AUD/NZD is trading at 1.0863 at time of writing with a high of 1.0922 and a low of 1.0862.

With some mixed outcomes from Australian data, the bears have it and the cross, AUD/NZD, is dropping on the back of price action through AUD/USD. AUD/USD has taken out the cluster of five-minute moving averages and the opening bearish pricing between the gap's 0.7630 and 0.7625 levels. The fresh low also broke the 0.7620 support with eyes now on 0.7580. AUD/NZD has move din a similar fashion and is printing fresh lows matching pricing last seen from the business done on the 28th March. The data arrived as:

• Australia's Feb retail sales misses expectations
• Australia Building Permits (YoY) increased to -4.9% in February from previous -12%
• Australia Building Permits (MoM) registered at 8.3% above expectations (-0.5%) in February
• Australia Retail Sales s.a. (MoM) below expectations (0.3%) in February: Actual (-0.1%)

Despite the recent correction in the cross, falling from 1.0965 highs at the end of March, analysts at Westpac medium term view is higher to 1.10+: "The cross remains well below fair value estimates implied by interest rates, commodity prices and risk sentiment, although is closing the gap (6 Mar)."

AUD/NZD levels

AUD/NZD is firmly in bearish territory on the near term charts. The 1hr chart has the ma's clustered above the 1.09 handle with the 20 and 50 sma's crossing lower. Stops through the 1.09 handle takes out the 200 ema on the same time frame. 1.0880 support was broken and now targets are at 1.0840 27th March double top guarding 1.0790 and 27th March low 1.0791. To the upside, 1.0964/80 is a key area of resistance guarding the 1.10 handle and 16th March high at 1.0992.