Key Points
- The Aussie dollar remained in a solid downtrend, and traded below 1.0820 against the Kiwi Dollar.
- There is a support trend line at 1.0790 on the hourly chart, which is currently preventing further losses in AUDNZD.
- Today in Australia, the HIA/AiG Performance of Construction Index for March 2017 was released by the Australian Industry Group and the Housing Industry Association.
- The outcome was lower than the last reading of 53.1, as there was decline to 51.2 in the Construction Index.
AUDNZD Technical Analysis
The Aussie dollar faced a lot of selling pressure recently, pushing it below the 1.0850 and 1.0820 supports against the Kiwi Dollar. The AUDNZD pair is currently trading just below 1.0800, and finding support near a trend line at 1.0790 on the hourly chart.
The pair is likely to break the trend line support at 1.0790 for further declines. There is a chance of a move towards the 1.618 extension of the last wave from the 1.0811 low to 1.0899 high at 1.0757.
If there is a correction from the current levels, then the 1.0820 area may now act as a resistance, followed by the 1.0850 level.
Australian HIA/AiG Performance of Construction Index
Recently in Australia, the HIA/AiG Performance of Construction Index for March 2017 was released by the Australian Industry Group and the Housing Industry Association. The forecast was lined up for no major decline from the last reading of 53.1 in March 2017.
However, the result was lower than the forecast, as there was a decline from 53.1 to 51.2. The report stated that “Across the four construction sub-sectors, house building activity drove growth in industry conditions in March. The sector’s activity sub-index expanded for a third consecutive month and at the fastest pace since mid-2016“.
Overall, the AUDNZD pair has hardly any reason to move higher, which is why it could trade lower towards 1.0760.
