AUD/NZD: bulls charging towards the 1.0770 resistance

• NZD retail sales disappoint.
• AUD/NZD is about to test the 1.0770 key resistance.

The AUD/NZD is trading around 1.0756 up 0.34% on the day as the pair has been range bound those last two months. 

The main event of the day was the US employment numbers but the data didn’t affect the AUD/NZD pair. 

On Thursday, New-Zealand Electronic Card Retail Sales y/y decelerated at 3.3% from 3.4% the month earlier. The m/m readings in January decelerated and disappointed with -0.3% from 1.4% the month earlier, the analysts' forecast was at 0.1%. There was no immediate reaction in the AUD/NZD pair, however, the European and US session saw traders buying the Aussie against the Kiwi and lifting the AUD/NZD up almost to the 1.0770 resistance 

AUD/NZD daily chart

The next key area of resistance is located at 1.0770 which was an important supply/demand zone those of late. If the resistance is broken, bulls will likely target the 1.08290-1.0850 which was an important supply/demand zone and a dynamic resistance with the 200 DMA. On the other side if the market fails at the 1.0770 resistance then a rotation lower to the 1.0700 figure is possible. If the bulls fail to hold the 1.0700 psychological level, then 1.0650 can become the next target for bears.