Technical Bias: Bearish
- Aussie Dollar looks nervous and might continue to trade lower in the near term.
- There was a major release in Australia, as the minutes of the Reserve Bank of Australia meetings were published, which failed to help the Aussie Dollar.
- Australian New Motor Vehicle Sales released by the Australian Bureau of Statistics was also published that registered a decline of 1.3% in July 2015.
- GBPUSD climbed higher and trading near a major resistance confluence area of 1.5700.
The AUDNZD pair recently suffered heavy losses and traded lower. There was a bullish trend line formed on the hourly chart, which was breached during the downside drift. One crucial point is that the pair settled below the 100 and 200 hourly simple moving average (SMA) as well.
However, there is another bullish trend line on the hourly chart, which managed to prevent the downside.
If the AUDNZD pair corrects higher from the current levels, then the broken trend line and the 200 plus 100 hourly SMA confluence resistance area might act as a hurdle for buyers.
RBA Meeting Minutes Aftermath and New Motor Vehicle Sales
Earlier during the Asian session, there were a couple of important releases in Australia. The most important one was the minutes of the Reserve Bank of Australia meetings. There was no sign of relief from the RBA, which kind of increased the bearish pressure on the Aussie Dollar and ignited a downside move.
Moreover, the New Motor Vehicle Sales, measuring motor vehicle sales in Australia was released by the Australian Bureau of Statistics. The market was not expecting any decline in sales in July 2015, compared with the preceding month. However, the result was disappointing, as the Australian New Motor Vehicle Sales decreased by 1.3%.
The pairs like AUDUSD and AUDNZD were seen under pressure after the release, which continued during the London session and might persists during the NY as well.
We can attempt a sell trade if the AUDNZD pair corrects higher and traded closer to the 200 hourly SMA.