AUD/NZD dips on dismal Aussie business survey data

AUD/NZD was offered at 1.0938 (0.764 Fib expansion of Jan 31 low - Feb 22 high- Feb 28 low) after the Aussie NAB monthly business survey fell from highs in February. 

Business conditions dropped 7 points to +9, but stayed above the long-run average of +5. Business confidence dipped 3 points to +7, but again was well above the average. 

Nevertheless, the monthly decline weighed over the Aussie pairs. The AUD/NZD cross dropped from 1.0945 to 1.0914 and looks set to test the 5-DMA support of 1.09 handle. 

The next data to watch out for is the Chinese retail sales and industrial production data. Upbeat numbers could help the cross retake losses, given the Kiwi is bogged down by the last week’s horrible GDT auction. 

AUD/NZD Technical Levels

A break above 1.0947 (previous day’s high) would expose 1.0971 (Jan 2016 high) and 1.10 (zero figure). On the downside, breach of support at 1.09 (5-DMA + zero figure) could yield a sell-off to 1.0849 (10-DMA, still sloping upwards) and to 1.08 (zero figure).