Key Points
- The Aussie dollar after a decline towards 1.0577 against the New Zealand dollar started recovering.
- There was a trend line break around 1.0610, and the AUDNZD pair is currently attempting to break another bearish trend line on the hourly chart.
- Today in Australia, the ANZ Business Confidence released by the ANZ.
- The outcome was lower, as there was a decline from the last reading of 27.9 to 24.5 in Oct 2016.
AUDNZD Technical Analysis
The Aussie dollar recently from the 1.0756 high to trade near 1.0580 against the New Zealand Dollar. The AUDNZD pair started recovering, and broke a bearish trend line formed on the hourly chart at 1.0620.
However, the pair is currently facing another bearish trend line on the same chart at 1.0645. Moreover, the 21 hourly simple moving average is also around the same trend line, acting as a resistance.
The last two candles show that the pair is struggling, which means it may trade lower to retest the 1.0600 support area.
ANZ Business Confidence
Today in Australia, the Business Confidence, which shows the business outlook in New Zealand and allows analysis of economic situation in the short term was released by the ANZ.
The outcome was lower, as there was a decline from the last reading of 27.9 to 24.5 in Oct 2016. The report highlighted that a “net 25% of businesses are optimistic about the year ahead, down 3 points on the month prior but still the second-highest reading this year. Service sector firms get the candy bag for first place. Agriculture is dragging the chain but is far less grave than it was at the start of the year, at +7”.
Overall, it won’t be easy for the Aussie dollar buyers to break the highlighted trend line resistance area at 1.0645, and may trade lower.
