- The AUD/NZD pair began Wednesday’s Asian trading session with fewer gains around 1.0530.
- Next up in the radar will be monthly release of Australian Westpac consumer sentiment index followed by the RBNZ monetary policy meeting.
- The pair needs to clear 1.0540 resistance else its pullback to the 1.0500 support-line can’t be denied.
The Australian Dollar (AUD) trades little changed around 1.0530 against the New Zealand Dollar (NZD) while Asian trading just began on Wednesday. The pair registered gains on Tuesday as renewed hopes of the US-China trade deal and welcome business survey results from Australia helped build positive sentiment. For now, traders await monthly release of Westpac consumer sentiment index from Australia prior to tightening their belts for quarterly monetary policy statement by the Reserve Bank of New Zealand (RBNZ).
Monthly release of National Australia Bank’s business survey revealed that the business conditions surged to 7 against prior 3 and business confidence rose to 4 from 3 noted in December last year. The news built initial upside sentiment of the AUD/NZD pair on early Tuesday.
Those moves were then carried forward after the US President Donald Trump signalled brighter chances of the US-China trade deal at a rally in Mexico. The news pleased Aussie traders as anything positive for the Australia’s biggest consumer is good for the AUD too.
Looking forward, February month Westpac consumer sentiment and results of the RBNZ monetary policy meeting will be closely observed for fresh impulse. The Westpac Consumer Confidence data dropped to -4.7% last-month whereas the RBNZ is likely to show bearish bias with no change in present monetary policy.
Latest New Zealand statistics like last-week’s employment details, earlier inflation figures and the third quarter GDP growth all point to one direction, i.e. a bearish bias by the RBNZ. Not only domestic data but uncertainty over the US-China trade deal and pessimism surrounding global economic growth might also push the New Zealand central bank to follow Reserve Bank of Australia (RBA) like dovish statements in spite of holding their “no immediate rate change” outlook.
While weaker AU data may trigger the pair AUD/NZD pair’s pullback, a dovish outlook from the RBNZ and/or bearish statements from the Governor, after an hour past rate announcement, could continue fuelling the pair to north.
AUD/NZD Technical Analysis
Unless offering a decisive break beyond 1.0540, the pair is less likely to aim for 1.0565 and 1.0600 resistance levels while 1.0620 and 1.0645 can limit the upside after 1.0600.
An upward sloping trend-line at 1.0500 seem immediate support for the pair, a break of which can highlight 1.0480 and 1.0455 rest-points.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.