Key Points
- The Aussie Dollar gained traction recently and moved above the 1.0440 resistance against the New Zealand Dollar.
- The AUDNZD pair broke a monster bearish trend line at 1.0450 on the hourly chart to open the doors for more gains.
- Today in Australia, the Gross Domestic Product for Q1 2017 was released by the Australian Bureau of Statistics.
- The outcome was above the forecast, as the Gross Domestic Product increased 0.3% (QoQ).
AUDNZD Technical Analysis
The Aussie Dollar was in a heavy downtrend below 1.0540 against the New Zealand Dollar until it found support at 1.0400. The AUDNZD pair consolidated above 1.0400 before spiking higher, and breaking many resistances like the 1.0440 and the 21 hourly simple moving average.
During the upside, the pair also cleared a monster bearish trend line at 1.0450 on the hourly chart, which cleared the way for more gain.
The pair recently corrected from 1.0506, but found support near the broken bearish trend line and moved higher once again above 1.0480. At the moment, the pair is attempting a break above the last high at 1.0506 for a move towards 1.0520.
Australia’s Gross Domestic Product
Recently in Australia, the Gross Domestic Product for Q1 2017 was released by the Australian Bureau of Statistics. The market was positioned for an increase of 0.2% in the GDP in Q1 2017, compared with the previous quarter.
The result was above the forecast, as the Gross Domestic Product increased 0.3%. Looking at the yearly change, the GDP grew 1.7%, more than the forecast of 1.5%. The report mentioned that “Compensation of employees increased 1.0% and total corporations gross operating surplus increased 6.2%. 17 out of 20 industries recorded growth in the March quarter. Net exports detracted 0.7 percentage points from growth”.
Overall, the AUDNZD may continue to move higher and could even break 1.0520 for a move towards 1.0540.
