Key Points
- The Aussie dollar is in a solid uptrend with support at 1.0860 vs the Kiwi Dollar.
- There is a monster bullish trend line support at 1.0850 formed on the hourly chart of the AUDNZD pair.
- Today, the RBA Interest Rate Decision was announced by the Reserve Bank of Australia.
- The result was in line with the forecast, as there was no change from 1.5% in the interest rates.
AUDNZD Technical Analysis
The Aussie dollar remained in a solid uptrend against the New Zealand dollar, and moved above 1.0840. The AUDNZD pair currently remains positive, and following a monster bullish trend line support at 1.0850 formed on the hourly chart.
The pair is currently trading near the 23.6% Fib retracement level of the move from the 1.0788 low to 1.0885 high. Any dip from the current levels might find bids near 1.0860 and 1.0850.
Going forward, the pair may extend the gains and look to test the 1.0900 handle. If the trend advances, there can be a break above 1.0900 as well.
Australian HIA/AiG Performance of Construction Index
Other than the RBA interest rate decision, the HIA/AiG Performance of Construction Index for Feb 2017 was released by the Australian Industry Group and the Housing Industry Association. The market was expecting a rise of around 5 points in Feb 2017.
The outcome was better than the forecast, as there was a rise to 53.1 from 47.7 in Feb 2017. The report added that “Only one of the five activity sub-indexes in the Australian PSI® was above 50 points and indicating expansion in February (seasonally adjusted data). Supplier deliveries continued to grow (53.7 points), but at a slower pace than in January“.
Overall, the trend is positive for the Aussie dollar, which might result in more gains towards 1.0900 in AUDNZD in the short term.
