AUD/NZD would be a pair to watch this week with lots of key events featured. In the background, eyes will remain on whether the coronavirus cases in Victoria of Australia continue to worsen. On data front, Australia will release NAB business confidence and employment. New Zealand will release CPI inflation.
AUD/NZD is so far still engaging in consolidation pattern from 1.0880, as a short term top was formed after hitting 1.0865 resistance. At this point, we’d continue to expect strong support from 38.2% retracement of 0.9994 to 1.0880 at 1.0542 to contain downside and bring rebound. Break of 1.0669 minor resistance will turn bias back to the upside to bring stronger rebound back towards 1.0880. However, sustained break of 1.0542 will bring deeper decline to 61.8% retracement at 1.0332.