Key Points
- The Aussie dollar remained in a downtrend against the Kiwi dollar and settled below 1.0400.
- There is a crucial bearish trend line on the hourly chart of AUDNZD with a resistance near 1.0400 at the moment.
- Today, the Australian Import Price Index was released by the Australian Bureau of Statistics.
- The result was above the forecast, as the Import Price Index rose 0.2% in Q4 2016, compared with the -0.5% forecast.
AUDNZD Technical Analysis
The Australian dollar declined recently and moved below the 1.0400 support area against the Kiwi Dollar. There is a consistent downtrend noted, which was initiated from the 1.0550 high. The AUDNZD pair is following a crucial bearish trend line on the hourly chart with a resistance near 1.0400.
Moreover, the 21 hourly simple moving average is also positioned with the trend line at 1.0400. So, the trend line resistance remains a major barrier for the Aussie dollar buyers in the short term.
On the downside, the AUDNZD pair may soon break 1.0380 for a move towards the last swing low of 1.0360.
Australian Import and Export Price Index
Today, the Import Price Index that informs the changes in the price of imported products was released by the Australian Bureau of Statistics. The market was looking for a decline of 0.5% in Q4 2016, compared with the previous quarter.
However, the result was above the forecast, as the Import Price Index rose 0.2% in Q4 2016. Similarly, the export price index rose 12.4% in Q4 2016, more than the forecast of 11%. The report added that “Through the year to the December quarter 2016, the Import Price Index fell 4.6%, and the year to the December quarter 2016, the Export Price Index rose 12.4%”.
Overall, the Aussie dollar may continue to decline, as it face major hurdles on the upside like 1.0400 and 1.0420 against the NZD.
