AUD/NZD heads toward monthly low below 1.0400 on dismal Aussie data

• AUD/NZD edges lower on Friday in the Asian trading session.
• The Aussie continues to trade lower on disappointing economic data, coronavirus jitters.
• Kiwi remains grounded on better COVID-19 situation and RBNZ hawkish view.

AUD/NZD retreats after printing some initial gains on Friday in the Asian session. The pair has been in continuous downside momentum for more than months, after making a high at 1.0824 on June 14.

At the time of writing, AUD/NZD is trading at 1.0404, down 0.05% for the day.

A combination of factors weighing the performance of the Australian dollar against its counterpart.

The Aussie remained pressurized on the extension of lockdown amid renewed COVID-19 jitters and downbeat economic data at home. Market participants remained cautious amid the worsening domestic coronavirus situation, as Australia’s Medical Association warned that country’s hospitals were not ready to tackle the government’s re-opening plans.

The IHS Markit Australia Composite Purchasing Manager’s Index (PMI) came at 43.3 in August as compared to 45.2 in the previous month whereas the AiG Construction (PMI) fell to 38.4 in August from 48.7 in the previous month.

It is worth noting that S&P 500 Futures were trading at 4,536.95 with 0.28% gains.

On the other hand, Kiwi gained on the better COVID-19 situation. The lockdown measures were eased for most of the country, still, the largest city Auckland remained in level 4 lockdown for another two weeks.

Meanwhile, Australia and New Zealand Banking Group (ANZ) hinted at a rate hike expectation from the Reserve Bank of New Zealand (RBNZ). This, in tune added to the optimism surrounding the Kiwi.

As for now, the market dynamics continue to influence the pair’s performance in the short term, China’s Caixin  PMI eyed to gauge the market sentiment.

AUD/NZD additional levels