Ella 
During Wednesday’s Asian session, the AUD/NZD cross attracted fresh buying around the 1.0745-1.0740 area and maintained a slight gain following the release of the latest Australian consumer inflation data. However, AUD/NZD lacks bullish momentum and is currently trading just above the mid-1.0700 level.
The Australian dollar (AUD) edged higher after the Australian Bureau of Statistics reported that the headline consumer price index accelerated from 4.9% to 5.2% in the 12 months to August 2023. The data once again confirmed the prospect that the Reserve Bank of Australia (RBA) cash rate will peak at around 4.55% in the first quarter of 2024 (up from the current 4.10%), boosting the AUD/NZD to gain positive momentum again.
Nonetheless, the lack of any follow through buying calls for investors to be cautious before opening positions for further intraday AUD/NZD gains. Investors remain concerned about deteriorating economic conditions in China. This, combined with ongoing concerns about the housing crisis in the world’s second-largest economy, has hampered traders from making aggressive directional bets on the AUD and AUD/NZD.
Additionally, AUD/NZD recently broke below the 200-day simple moving average (SMA), suggesting minimal downside for the AUD/NZD cross. Therefore, AUD/NZD gains may still be viewed as shorting opportunities, and there is a chance that these opportunities will disappear quickly.
