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Market Analysis

Home » Technical Analysis » Daily » AUDNZD » Aussie Dollar Remains Favorite versus New Zealand Dollar

Aussie Dollar Remains Favorite versus New Zealand Dollar

Posted by FXTimes in AUDNZD - August 5th, 2015 5:30 am GMT

New Zealand dollar NZDUSD

Technical Bias: Bullish

Key Points

  • Australian dollar surged higher against the New Zealand Dollar, as the latter one weakened a lot recently.
  • AUDNZD remains a buy on dips pair, as long as it is above 1.1150.
  • New Zealand Employment Change published by the Statistics New Zealand registered an increase of 0.3% in Q2 2015, lower compared with the forecast of 0.5%.
  • New Zealand Unemployment Rate was unchanged at 5.9%.

Technical Analysis

The AUDNZD pair enjoyed a decent run towards the upside, as the pair traded higher and cleared an important resistance area at 1.1150 which might act as a support if the pair corrects lower from the current levels. There was a major bearish trend line formed on the 4-hours chart of the AUDNZD pair, which was cleared to open the doors for more gains in the near term.

The most important point is the fact that the pair is now well above the 200 and 100 simple moving averages (H4), i.e. a bullish sign. As long as the pair is above the 200 SMA (H4) more upsides are possible.

AUDNZDH4

If the pair corrects lower from the current levels, then an initial support lies around the 38.2% Fib retracement level of the last wave from the 1.0896 low to 1.1309 high, which is coinciding with the 200 SMA (H4).

New Zealand Employment Change

There was a major release in New Zealand today, as the Employment Change, measuring the change in the number of employed people was released by the Statistics New Zealand. The forecast was lined up for an increase of 0.5% in the second quarter of 2015. However, the outcome missed the mark, as the New Zealand Employment Change rose 0.3%. Moreover, the New Zealand Unemployment Rate remained at 0.3% just as the market expected.

Commenting on the report, the labour market and household statistics manager, Diane Ramsay, mentioned that “Despite lower quarterly growth, this is still the 11th consecutive quarter of employment growth, making it the second-longest period of growth since the period between 1992 and 1996”.

Trade Idea

Buying dips around the 200 SMA (H4) looks like a good deal in the near term.

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