Capped By Fibo Retracement Level

AUD/NZD shed a handful of pips before recouping losses, with little in the way of fresh catalysts seen in the Antipodes. It last operates at NZ$1.0704, 2 pips worse off and within its recent range. The rate continues to establish itself below the 50% recovery of the Aug 18 - Dec 1 sell-off at NZ$1.0731, which capped gains into the end of 2020/in early days of 2021. It roughly coincides with the 100-DMA, which intersects at NZ$1.0720, adding to the significance of this region. A break above these levels would expose Nov 5 high of NZ$1.0767. On the flip side, a breach of Dec 29 low of N$1.0629 is needed to hand the initiative over to bears, who would then be able to target Dec 8 low of NZ$1.0513.

• Final readings of Australia's Markit Services & Composite PMIs for Dec were revised a touch lower, but remained comfortably in expansionary territory. Focus moves to China's Caixin Services & Composite gauges.