AUDNZD SUMMARY:Trade Now
Moving Average: Neutral
Technical Indicators: Neutral
Fundamentals AUD/NZD: Neutral/Neutral
AUDNZD Live Chart
With both countries economies struggling; this pair is likely to trade side ways for some time.
AUDNZD Technical Review by IRONFOREX
AUDNZD traded slightly lower during the European morning Wednesday after it hit resistance at the 1.0895 (R1) line. The pair has been trading within a short-term downside channel since the 3rd of December and this keeps the near-term picture negative in my view. A break below the support line of 1.0835 (S1) is likely to pave the way for the next hurdle at 1.0775 (S2). The RSI, already below its 50 line, has turned down again, while the MACD looks ready to turn south near its trigger line, within its negative territory. These indicators reveal downside momentum and support the near-term downtrend. However, I see that there is positive divergence between the RSI and the price action which increases the risk for an upside corrective move, even above the upper bound of the aforementioned channel. A move above 1.0895 (R1) is likely to confirm the rebound and could target the 1.0955 (R2) line. On the daily chart, the pair looks to be trading within a wide downside channel which has been containing the price action since the 18th of September. As a result, I would consider the longer-term outlook to be negative as well.
- Support: 1.0835 (S1), 1.0775 (S2), 1.0725 (S3)
- Resistance: 1.0895 (R1), 1.0955 (R2), 1.1030 (R3)
Fundamental Review by IRONFOREX
The dollar traded lower against most of its G10 counterparts during the European morning Wednesday. It was higher against AUD and NZD in that order, while it was lower against SEK, GBP, EUR, NOK and CHF. The greenback remained virtually unchanged against JPY and CAD.
With a relatively light calendar, market participants are paying more attention to commodities and the related currencies. As iron ore prices, Australia’s main export, continue to fall, the Aussie has come under renewed selling pressure, enduring losses of approximately 0.5% against the dollar. As for crude oil, while the price is still at remarkable lows, it has not dipped any further down and as a result the downside momentum for the oil-related currencies appears to have moderated somewhat.
The plunge in commodity prices, and consequently in the commodity currencies, has increase the demand for lower yielding, but safer currencies such as EUR, although the movement has been fairly quiet.
Factors Influencing the AUDNZD
- Inflation Rate.
- Employment Rate.
- Monetary Policies.