AUD/NZD Price Analysis: Stays depressed below 1.0700 despite swift action around New Zealand GDP

• AUD/NZD trims the latest pullback from a three-day low.
• New Zealand’s Q1 GDP contracts 1.6% QoQ, 0.2% on YoY.
• The monthly falling trend line adds to the upside barrier amid bearish MACD.

AUD/NZD fades the quick bounce from three-day low while easing from 1.0669 to 1.0663 during the initial Asian session on Thursday. The pair’s latest moves could be attributed to New Zealand’s first quarter (Q1) GDP release that flashed downbeat figures. However, the quote remains below key technical resistances and hence keeps the sellers hopeful as we write.

Read: Breaking: New Zealand GDP contracts 1.6% QoQ in Q1, Kiwi pops and drops

Among the catalysts that favor the bears are a confluence of 100 and 200-bar SMA, downbeat MACD histogram and a descending trend line from June 02.

As a result, the pair’s further weakness towards the monthly low, near 1.0581, becomes expected. Though, 1.0610 might offer an intermediate halt during the fall whereas May month bottom surrounding 1.0575/70 could challenge the sellers afterward.

In a case where the bears dominate past-1.0570, March month’s high near 1.0535 and 1.0500 round-figure could become their favorites.

Alternatively, a sustained break above 1.0715 needs to cross the weekly peak of 1.0735 to regain the strength to target 1.0800 round-figures during the further upside.

AUD/NZD four-hour chart

Trend: Bearish