AUD/NZD: Bears waiting to pounce for a breakout below key technical horizontal support

• AUD/NZD is stationary awaiting the next batch of Aussie data. 
• AUD/NZD is currently trading at 1.0421, up from the lows of 1.0395.

The cross has been subject to a number of key headlines surrounding both the RBA and RBNZ of late. The RBA minutes were the latest catalyst that initially had the Aussie on the back foot before moving higher. 

The Aussie was extending its NY morning gains from 0.7105 to 0.7145 vs the greenback  when, according to Bloomberg sources, as part of the current trade negotiations, the US was reported asking China to keep the value of the yuan stable, as noted by analysts at Westpac:

"...a move designed to neutralise any effort by China to devalue its currency to counter US tariffs. FX markets moved to price in a weaker US dollar and stronger yuan. USD/CNH had already been trending lower and extended its decline to 6.7450 after the report, -0.4% over the day." The Aussie also got a lift when from President Trump reiterating that the 1 March deadline for a US-China trade deal was not actually a deadline.

Looking ahead, besides Aussie wage data today and jobs tomorrow, traders are looking to the FOMC minutes for more details for why there has been a sudden switch towards a dovish tone. "The minutes are expected to confirm a generalised absence of inflation pressures, global risks, and the proximity of the fed funds rate to neutrality," analysts at ANZ Bank explained.

Aussie wage preview:

The analysts at Westpac explained, that at 11:30am Syd/8:30am Sing/HK we see Australia Q4 wages data:

"In yesterday’s meeting minutes, the RBA Board said that, “Tightening labour market conditions were expected to put upward pressure on wages, although to date wages growth in Australia and elsewhere had been slower to pick up than in previous expansions.” Annual growth in the wage price index fell from above 4% pre-GFC and above 3.5% in 2011-2012 to just 1.9% in 2016-2017, the slowest wages growth by any measure since at least the early 1960s. It edged back to 2.3%yr in Q3 2018, with Westpac forecasting 0.6%qtr, 2.3%yr in Q4, in line with consensus. We see risks of any surprise skewed to the upside"

AUD/NZD levels

As the price accumulates below a long term rising support trend, the bears are waiting to pounce at a key techncial support level made up of a series of monthly lows stretching back to 2014 early swing levels. The price, is, however, trying to correct higher, capped at R1 on the daily outlook. A break to the downside will target S3 located at 1.0343.