AUDNZD Targets Fresh Lows

Key Highlights

  • New Zealand Dollar gained traction recently against the Aussie Dollar, and looks set for more gains.
  • AUDNZD pair is trading around the key support area, which if broken might ignite healthy losses.
  • Australian HIA/AiG Performance of Construction Index released by the Australian Industry Group and the Housing Industry Association increased from 47.0 to 47.8 in May 2015.
  • A major risk event scheduled today in the US, as the nonfarm payrolls report will be released by the US Department of Labor, which is expected to post an increase of 225K.

US NFP

Today, it is the NFP day, as the US nonfarm payrolls data, which presents the number of people on the payrolls of all non-agricultural businesses will be released by the US Department of Labor. The forecast is of a good gain +225K. If the outcome stays in the positive zone or above 200K the US dollar might gain bids moving ahead.

AUDNZD – Technical Analysis

The Aussie Dollar after setting a high around 1.0900 against the New Zealand Dollar moved lower, and currently down by more than 100 pips from the highs. The AUDNZD pair is currently trading around an important bullish trend line on the hourly chart, which is providing support to the pair.

AUDNZD

The most critical point to note is that the pair has settled below the 100 hourly simple moving average, which can be considered as a bearish sign. Moreover, it is consolidating around the 61.8% Fib retracement level of the last leg from the 1.0698 low to 1.0911 high. Let us see how long the pair can continue to trade above the highlighted trend line. A break below the same might call for more losses in the near term. The next of support in the mentioned case could be around the 200 SMA.

On the upside, the broken 100 hour SMA may perhaps act as a resistance for the pair in the near term. A close above it might change the trend to bullish.

Australian HIA/AiG Performance of Construction Index

Earlier during the Asian session, the Australian HIA/AiG Performance of Construction Index, which is an indicator that measures the conditions on the short and medium term in the construction market was released by the Australian Industry Group and the Housing Industry Association. The market was not expecting any rise in the index in May 2015. However, the report stated that the Australian HIA/AiG Performance of Construction Index rose from 47.0 to 47.8.



Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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