Key Points
- The Aussie dollar remained in an uptrend against the Kiwi dollar, and may trade above 1.0520.
- There is an ascending channel pattern formed on the hourly chart of AUDNZD with support at 1.0500.
- Today in Australia, the AiG Performance of Services Index was released by the Australian Industry Group
- The result was mixed, as there was a decline from the last reading of 57.7 to 54.5 in Dec 2016.
AUDNZD Technical Analysis
The Aussie dollar made a nice upside move recently, settling above the 1.0460 resistance against the Kiwi dollar. The AUDNZD pair is currently following an ascending channel pattern formed on the hourly chart with support at 1.0500, and remains poised for more gains.
On the upside, a break above the last swing high at 1.0519 is almost on the cards, and the pair may even break it for a move towards 1.0540.
On the downside, the recent dip found support near the channel lower trend line and the 23.6% Fib retracement level of the last wave from the 1.0412 low to 1.0519 high.
AiG Performance of Services Index
Today in Australia, the AiG Performance of Services Index, which presents business conditions in the Australian service sector was released by the Australian Industry Group. The market was expecting no major decline in Dec 2016 from 57.7.
However, the result was mixed, as there was a decline from the last reading of 57.7 to 54.5 in Dec 2016. The report added that the index “continued to expand in January but at a slower pace than in December, with the index dropping 3.2 points to 54.5 points (results above 50 points indicate expansion, with higher numbers indicating a stronger rate of expansion)”.
Overall, the Aussie dollar looks set for more upsides in the short term vs Kiwi, may be above 1.0520 and 1.0540.
