Key Points
- The Aussie Dollar traded higher above 1.0800 against the Kiwi Dollar, and currently trading with a positive bias.
- The AUDNZD pair is likely approaching a crucial resistance at 1.0830 and a connecting bearish trend line formed on the hourly chart.
- Today in New Zealand, Banks were closed due ANZAC Day, and Kiwi Dollar was seen trading lower.
- Tomorrow, Australia will see the release of the Consumer Price Index (YoY) (Q1, 2017) by the RBA and republished by the Australian Bureau of Statistics.
AUDNZD Technical Analysis
The Aussie Dollar made a nice upside move this week and traded above the 1.0740 and 1.0760 resistance levels against the Kiwi Dollar. The AUDNZD pair also moved above the 21 hourly simple moving average and the 50% Fib retracement level of the last decline from the 1.0770 high to 1.0676 low.
The upside move is very positive, and at the moment, the pair is approaching a crucial resistance at 1.0830 and a connecting bearish trend line formed on the hourly chart.
However, since the pair is already above the 1.236 extension of the last decline from the 1.0770 high to 1.0676 low, it could test the 1.618 extension at 1.0828 where sellers may emerge.
Australian Consumer Price Index
There is a major release in Australia tomorrow, as the Consumer Price Index (YoY) (Q1, 2017) will be reported by the RBA and republished by the Australian Bureau of Statistics. The forecast is lined up for the index to increase by 2.2% in Q1 2017, compared with the same quarter a year ago.
The result may impact the Aussie Dollar in the near term, and we need to see how AUDNZD trades around 1.0830 or 1.0850 if the outcome does not disappoint.
Overall, the AUDNZD may continue to trade higher, but it won’t be easy for it to break the 1.0830 resistance.
