The AUD/NZD currency pair is still under pressure near its monthly lows, having been sidelined recently.
General practitioners in Australia volunteer to deliver the Pfizer vaccination; Victoria reports no new cases, but Sydney is still at risk.
The PMIs for June in Australia were positive, but not enough to keep bulls on the table.
Traders may be interested in the China Caixin Services PMI and the final reading of Australia Retail Sales for May.
During Monday’s Asian session, the AUD/NZD fails to extend Friday’s bounce off a monthly low, being stuck around 1.0700. As a result, despite encouraging Australian PMUI statistics, the quotation remains low, despite the coronavirus (COVID-19) problem in Australia.
During the week, no new covid cases are reported in Victoria, but the infection of a primary school student and two other people in Sydney’s aged care homes disturbs AUD traders. The four new local cases from Queensland were also discouraging.
On the plus side, the Australia Commonwealth Bank (CBA) Services PMI for June above the 56.00 forecast and jumped to 56.8, while the CBA Composite PMI increased from 56.1 to 56.7.
The recent pessimism expressed by Reserve Bank of Australia (RBA) policymakers, as opposed to the euphoria around the RBNZ’s rate hike, has weighed on the AUD/NZD exchange rate. Furthermore, New Zealand’s achievement in containing the pandemic keeps the Kiwi on top of global currencies.
In a quiet Asian session, traders are troubled by indecision over the Fed’s next moves and confidence about the US economy. However, by press time, S&P 500 Futures had down 0.15 percent intraday.
Moving on, China’s Caixin Services PMI for June, which is predicted to rise to 55.7 from 55.1 previously, as well as Australian Retail Sales for May, which are expected to confirm the 0.1 percent initial projection, could provide intermediate changes in the AUD/NZD exchange rate. However, the bears remain optimistic due to New Zealand’s substantially superior fundamentals and the increased likelihood of a rate hike by the RBNZ.
Sustained trading below the 200-day moving average, at 1.0725, is directing AUD/NZD values toward the lows of May, around 1.0600./n
