AUD/NZD Consolidation Primed For Upside Resolution

From the FXWW Chatroom: AUD/NZD has consolidated in a 1.1045-1.1165 range in the past 10 days barring a brief spike to 1.1203 on NZ business sentiment data. Today’s rise in Australia’s NAB business confidence and conditions stands in stark contrast to the steep drop in the NZ survey on April 5. The RBNZ’s (aggressive?) dovish bias also contrasts with the RBA’s comfortably onhold stance. The cross has sufficiently corrected after its February-March rally from 1.0574 to 1.1335, both in time and distance. The pullback from 1.1335 has held above 1.1015-31 Fibo supports. The majority of the market expects China’s data this week to disappoint, leaving the risk of an upside surprise. All the ingredients look to be in place for AUD/NZD to resume its rally.  [IFR]

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