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Notable Aussie Strength, Retail Sales & China PMIs in Focus Tuesday

AUD
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  • With the greenback trading weaker and global equity markets remaining stable on Monday, antipodean FX continues to outperform in G10. Both AUD and NZD have risen over 0.5% against the dollar to start the week.
  • Aussie retail sales and private sector credit, plus China PMIs are due overnight, and attention is on a developing bullish phase for AUDUSD. Resistance at 0.6526, the 50-day EMA, has been breached and the clear break highlights a stronger reversal that signals scope for a climb towards 0.6644, the Apr 9 high.
  • There has also been a notable breakdown on the EURAUD chart in recent weeks, a move that has seen momentum build following a trendline break (drawn from the Jan 2023 lows). Lows today at 1.6291 closely coincide with next trendline support (shown below) and further AUD strength this week could prompt an initial move to the 2024 lows at 1.6129.
  • Additionally, AUDNZD tested above 1.1000 today for the first time since June 2023 to reach 1.1013. This extends the bounce from the year’s lows to over 4%. Highs at 110.56 and 1.1088 are immediate points of reference on the topside, however, our APAC team have highlighted that the pair’s 14-day RSI is now in overbought territory.

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  • With the greenback trading weaker and global equity markets remaining stable on Monday, antipodean FX continues to outperform in G10. Both AUD and NZD have risen over 0.5% against the dollar to start the week.
  • Aussie retail sales and private sector credit, plus China PMIs are due overnight, and attention is on a developing bullish phase for AUDUSD. Resistance at 0.6526, the 50-day EMA, has been breached and the clear break highlights a stronger reversal that signals scope for a climb towards 0.6644, the Apr 9 high.
  • There has also been a notable breakdown on the EURAUD chart in recent weeks, a move that has seen momentum build following a trendline break (drawn from the Jan 2023 lows). Lows today at 1.6291 closely coincide with next trendline support (shown below) and further AUD strength this week could prompt an initial move to the 2024 lows at 1.6129.
  • Additionally, AUDNZD tested above 1.1000 today for the first time since June 2023 to reach 1.1013. This extends the bounce from the year’s lows to over 4%. Highs at 110.56 and 1.1088 are immediate points of reference on the topside, however, our APAC team have highlighted that the pair’s 14-day RSI is now in overbought territory.