AUD/NZD fals back below key trend line support on Aussie CPI miss

• AUD/NZD is extending its decline following the Aussie CPI miss that came in at 0.4% vs 0.5% for the 3rd quarter while Y/Y arrived in line at 1.9%.

AUD/NZD has now moved to test S1 at 1.0810 and below the trend line support with targets set on the lows of this rising corrective channel down at S3 located at  1.0778. 

Australian inflation mostly comes in as expected, but headline CPI declines to 1.8%

All eyes on China PMIs now

However, the data has also stopped the Kiwi in its tracks vs the greenback as we now await the Chinese data set that will surely be another dent in the antipodeans advances if there too come in below expectations and disappoint. The consensus is for little change vs Sep at 50.6 and 54.6 respectively, though the lengthy holidays at the start of the month could produce some distortion, as noted by analysts at Westpac. 

AUD/NZD levels

 A break of 1.0791 at S1 opens 21st June lows at 1.0715. 1.0658 is the 18th June lows and judging by the 4 hr chart RSI, there is plenty to go with MACD also starting to open up the downside prospects once again. On the upside, bulls need to get back above the 21-D SMA with the confluence of R3 at 1.0880.