AUD/NZD Price Analysis: Bulls face a wall of resistance around 1.0960-1.1000

• The Aussie is set to finish the month with gains, up so far by 1.43%.
• The lack of New Zealand economic data and the hot Australian inflation report boosted the prospects of the AUD.
• AUD/NZD Price Forecast: Solid resistance around 1.0960-1.1000 might put a lid on the AUD/NZD upside.

The AUD/NZD seems poised to pare earlier week losses and is rising for the third consecutive day in the week, up a modest 0.13% as the Asian Pacific session begins. At the time of writing, the AUD/NZD is trading at 1.0943.

The week’s lack of New Zealand data left the AUD/NZD adrift to the Australian economic docket, which showed that inflation rose by 5.1% y/y, higher than the 4.6% estimations and smashing the 3.5% previous reading on the headline. Core inflation accelerated to its fastest pace since 2009, to 3.7%, from an earlier 2.6% reading.

Aside from this, sentiment improved throughout the day, and the Asian session carried on Wall Street’s mood. The coronavirus woes in China kept investors on their toes. Meanwhile, the Ukraine-Russian tussles alongside a weaker than expected US growth report were put aside by market players as appetite for riskier assets increased.

Therefore, the AUD/NZD appreciated in the week on expectations that the Reserve Bank of Australia (RBA) would hike rates in May. Nevertheless, a Federal Election in Australia could deter the RBA from taking action despite a high inflationary reading.

AUD/NZD Price Forecast: Technical outlook

The AUD/NZD bias is tilted to the upside. The daily moving averages (DMAs) below the exchange rate depict the pair in an uptrend. However, Thursday’s price action encountered solid resistance around 1.0962, a zone clouded by resistance levels around the 1.0960-1.1000 area.

Upwards, the AUD/NZD’s first resistance would be April’s 28 daily high at 1.0962. Once cleared, the next supply zones would be 1.0975, followed by 1.0998.

On the other hand, the AUD/NZD first demand zone would be 1.0900. Break below would expose April’s 28 at 1.0880, followed by April’s 25 swings low at 1.0824.

Key Technical Levels