Key Points
- The Aussie dollar after trading as high as 1.0648 against the NZD found sellers, and corrected lower.
- During the correction phase, the AUDNZD pair found support near 1.0530, and a bullish trend line formed on the hourly chart.
- Today in New Zealand, the Food Price Index (FPI) was released by the Statistics New Zealand.
- The result was disappointing, as there was a decline of 0.8% in Oct 2016, compared with the previous month.
AUDNZD Technical Analysis
The Aussie dollar remained higher this week and traded above the 1.0520-40 resistance area. The stated resistance break in AUDNZD was important, as the same area is currently acting as a support zone for the Aussie buyers at 1.0540.
The pair is currently correcting lower, and finding bids near the 1.540 support, and a bullish trend line formed on the hourly chart. Moreover, the 21 hourly simple moving average is also acting as a support.
It looks like the AUDNZD pair may continue to move higher, and could even break the 1.0590 resistance for a move above 1.0600.
New Zealand Food Price Index (FPI)
Today in New Zealand Food Price Index (FPI), which measures price changes of food bought by households was released by the Statistics New Zealand. The market was not expecting a decline of more than 0.5% Oct 2016, compared with the previous month.
However, the result was disappointing, as there was a decrease of 0.8%. The report added that “Salads are cheaper as warmer weather arrives, with tomato and lettuce prices both down 29 percent in October. Seasonally lower fruit and vegetable prices saw overall food prices fall 0.8 percent in the month. Adjusting for the typical seasonal patterns, prices were flat”.
Overall, Aussie dollar may gain bids and could trade back towards the 1.0640 level against the NZD.
