Key Points
- The Aussie dollar declined heavily recently to trade as low as 1.0342 against the Kiwi Dollar.
- Later, the AUDNZD pair started correcting higher, and broke a bearish trend line formed on the hourly chart at 1.0365.
- In Australia, the Private Sector Credit report was released by the Reserve Bank of Australia.
- The result was in line with the forecast, as there was rise of 0.5% in Nov 2016, compared with the previous month.
AUDNZD Technical Analysis
The Aussie dollar struggled recently against the Kiwi dollar, and traded below the 1.0400 support area. The AUDNZD pair traded as low as 1.0342 before starting a correction. The pair made a nice move recently and broke a bearish trend line formed on the hourly chart at 1.0365.
Moreover, the pair closed above the 21 hourly simple moving average. Now, a close above the 23.6% Fib retracement level of the last decline from the 1.0503 high to 1.0342 low may call for more gains.
If you are looking to buy, then consider it near the 21 hourly SMA with a stop below it.
Australian Private Sector Credit
In Australia, the Private Sector Credit, which is an amount of money that the Australian private sector borrows was released by the Reserve Bank of Australia. The market was aligned for an increase of 0.5% in Nov 2016, compared with the previous month.
The result was in line with the forecast, and the yearly change came in at +5.4%, up from the last reading of +5.3%. The report added that “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 $46 billion over the period of July 2015 to October 2016, of which $0.8 billion occurred in October 2016”.
Overall, it looks like the Aussie dollar may continue trading higher against the Kiwi dollar towards 1.0400.
