AUD/NZD technical analysis: 1.0600 support-line grabs attention despite positive China data

• Short-term support-line challenges sellers while upside capped near 1.0640/45.
• China’s inflation data flashed positive signals but trade deal worries weigh on sentiment.

Even after witnessing better than previous numbers of China’s headline inflation, AUD/NZD couldn’t avoid immediate ascending trend-line stretched since May 06 as it trades near 1.0610 on early Thursday.

Should prices slip beneath the 1.0600 marks, 1.0570 can offer an intermediate halt to the downside targeting 1.0540/30 horizontal-area.

Also, pair’s sustained trading under 1.0530 might not refrain from calling 1.0500 and 1.0450 back to the table.

Meanwhile, a horizontal region near 1.0640/45 can limit the quote’s short-term upside, a break of which can trigger the pair’s recovery to 1.0670 and then to 1.0700.

Though, additional rise past-1.0700 enables bulls to target 1.0730 and 61.8% Fibonacci expansion (FE) of its moves since March 27, at 1.0800.

AUD/NZD 4-Hour chart

Trend: Pullback expected