AUD/NZD Price Analysis — November 23

The AUD/NZD traded on positive in the early European session, following the release of positive data from Australia on Friday.

The Commonwealth Bank of Australia’s (CBA) released better-than-expected preliminary Manufacturing PMI readings for November. As a result, the Composite PMI saw a decent boost as well.

Also, the ASX 200 extended additional support to the Aussie following its goodish bounce last week.

Meanwhile, it got reported recently that Aussie Treasurer Josh Frydenberg signaled a tax-cut extension for domestic businesses in the country. This recent development, as confirmed by the Australian Financial Review (AFR), bolstered the risk tone surrounding the Aussie.

In other news, New Zealand reported better-than-expected Q3 Retail Sales and Core Retail Sales, indicating a drastic improvement in the country’s economy.

The data added to the positive tone that had been set by the Reserve Bank of New Zealand policymakers. Although the RBNZ Governor Adrian Orr cited a gloomy picture of the global COVID-19 resurgence in his latest speech, the Governor firmly stood against negative rates in the near-term while lauding the performance of the Pacific economy in the face of the pandemic.

AUD/NZD Value Forecast — November 23

AUD/NZD Major Bias: Bullish

Supply Levels: 1.0600, 1.0650, and 1.0725

Demand Levels: 1.0520, 1.0485, and 1.0400

The AUD/NZD is currently trading with a bullish tone following its recent bounce off the 1.0520 support level. That said, we are likely to see the pair make a break for the 1.0600 resistance soon. This proposed bullish momentum will get negated if the AUD/NZD sees a sustained break below the 1.0520 support.

Nonetheless, given that it’s still the start of the week and volatility is sparse, we should expect some sideways movement in the coming hours.

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