- The Aussie dollar is trading higher versus the New Zealand Dollar, and currently above 1.0580.
- There is a monster ascending channel pattern formed on the hourly chart of AUDNZD, taking the pair higher.
- Today in New Zealand, the Trade balance was released by Statistics New Zealand.
- There was a trade deficit of $-3.3B in Oct 2016, compared with Oct 2015.
AUDNZD Technical Analysis
The Aussie dollar climbed higher against the Kiwi Dollar to trade above 1.0550. The AUDNZD pair is currently in an uptrend, and following a monster ascending channel pattern formed on the hourly chart.
The pair recently found sellers near 1.0610 and stated a correction. However, the channel support trend line and the 23.6% Fib retracement level of the last leg from the 1.0469 low to 1.0612 high may act as a support in the short term.
On may consider buying as long as the pair is above the channel support trend line on the hourly chart of 1.0560.
New Zealand Trade balance
Today during the Asian session, the Trade balance, which is the difference between the value of country’s exports and imports was released by Statistics New Zealand.
The market was not expecting any major improvement in the trade figures. The result was disappointing, as there was trade deficit of $-3.3B in Oct 2016, compared with Oct 2015. When we look at the monthly change, there was a trade deficit of $-846M, which was less than the last revised reading of $-1,394M. The report added that “In October 2016, total goods exports rose $85 million (2.2 percent). Dairy exports rose $122 million (13 percent) to $1.1 billion. Butter rose $61 million (29 percent) and milk powder rose $57 million (12 percent)”.
Overall, the Kiwi dollar may correct, but it is likely to remain under a bearish pressure in the short term.