AUD/NZD revisits 1-hour 50-MA on weak NZ retail sales number

The AUD/NZD pair jumped to 1-hour 50-MA level of 1.0675 after the big miss on the New Zealand retail sales number strengthened the offered tone around the NZD. 

New Zealand fourth quarter retail sales printed at 0.8% q/q, which was well below the estimate of 1.1%. The prior figure was revised lower to 0.8% from 0.9%. The weaker-than-expected headline number pushed the NZD/USD to a session low of 0.7200. 

However, the losses in the NZD were capped due to the uptick in the core retail sales figure. The number printed at 0.6% in December, outperforming September's 0.2% growth. 

Consequently, the AUD/NZD cross is having a tough time breaking above the 1-hour 50-MA. The AUD/USD has moved back above 0.77 levels, which is protecting the downside in the AUD/NZD cross. 

AUD/NZD Technical Levels

The cross was last seen trading around 1.0670. A break above 1.0675 (1- hour 50-MA) would also mark a breach of the falling top formation on the 1-hour chart and would open doors for 1.0707 (Feb 15 high), above which 1.0756 (Oct 26 high) could be put to test. 

On the lower side, breach of 5-DMA at 1.0668 could yield a pullback to 1.0634 (previous day’s low). A daily close below the same would signal the rally from 1.0326 (Jan 31 low) has ended. The pair could then test 1.0572 (Jan 11 high).