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Market Analysis

Home » Technical Analysis » Daily » AUD » AUDNZD – Can Aussie Dollar Continue Higher?

AUDNZD – Can Aussie Dollar Continue Higher?

Posted by FXTimes in AUD - May 31st, 2016 11:30 am GMT

aussie dollar audusd audnzd

Key Points

  • The Aussie Dollar surged higher vs the New Zealand dollar recently and broke a major resistance area.
  • There was a channel pattern formed on the hourly chart of the AUDNZD pair, which was cleared by the bulls.
  • In Australia today, the Private Sector Credit released by the Reserve Bank of Australia posted a rise of 0.5% in April 2016.
  • In New Zealand, the Business Confidence released by the ANZ posted a rise from the last reading of 6.2 to 11.3 in April 2016.

Technical Analysis

The Aussie dollar moved higher recently vs the New Zealand dollar, and settled above the 100 hourly simple moving average. There was also a channel pattern formed on the hourly chart of AUDNZD, which was broken during the upside move.

AUDNZD

The pair traded as high as 1.0776 and currently correcting lower. If the pair continues to move down, then a retest of the broken trend line is possible where buyers might appear.

On the upside, a break above 1.0776 may take AUDNZD towards 1.0800.

Australian Private Sector Credit

Today in Australia, the Private Sector Credit, which is an amount of money that the Australian private sector borrows and shows if the private sector can afford large expenses, which can fuel economic growth was released by the Reserve Bank of Australia. The outcome was positive, as there was a rise of 0.5% in April 2016.

The report added that “Following the introduction of an interest rate differential between housing loans to investors and owner-occupiers in mid-2015, a number of borrowers have changed the purpose of their existing loan; the net value of switching of loan purpose from investor to owner-occupier is estimated to have been $40 billion over the period of July 2015 to April 2016 of which $1.2 billion occurred in April”.

No doubt, the Aussie dollar is gaining pace, and if the bulls remain in control, there is a chance of a move towards 1.0800.

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