• AUD/NZD holds onto the previous day’s bullish bias after New Zealand foreign trade numbers for July.
• Trade deficit widened on YoY but eased on MoM, Imports-Exports rose during July.
• Convergence of 100-SMA, three-week-old resistance line challenge bulls.

AUD/NZD bulls attack a short-term key hurdle surrounding 1.1070 on New Zealand’s mixed trade numbers for July, published early Friday. With this, the pair extends the previous day’s recovery moves amid a sluggish Asian session.

New Zealand Trade Balance dropped to $-11.64B YoY versus $-10.94B prior while improving on MoM to $-1092M from $-1102M previous readings. Further, Imports grew to $7.77B from $7.38B whereas Exports rose to $6.68B compared to $6.27B prior.

Technically, the pair pokes the convergence of the 100-SMA and a downward sloping resistance line from late July.

Given the recent highlight low on the RSI (14) backing the higher low on AUD/NZD prices, the quote is likely to remain firmer.

However, the weekly top surrounding 1.1085 acts as an extra upside filter for the pair buyers to watch before taking control. Following that, a run-up towards the monthly high near 1.1135 can’t be ruled out.

Alternatively, 61.8% and 78.6% Fibonacci retracement of June-July upside, respectively around 1.1040 and 1.10000, could challenge the AUD/NZD bears.

AUD/NZD: Four-hour chart

Trend: Further upside expected