Key Points
- The Aussie Dollar started a downside correction from the 1.1131 high against the New Zealand Dollar.
- There is a major contracting triangle forming with support at 1.1070 on the hourly chart of AUDNZD.
- Recently in Australia, the minutes of the Reserve Bank of Australia (7 November 2017) were released.
- There was nothing much in the minutes released for November 2017.
AUDNZD Technical Analysis
The Aussie Dollar made a nice upside move recently and tested the 1.1130 resistance area against the New Zealand Dollar. The AUDNZD pair started a downside correction and moved below the 1.1100 support area and the 21 hourly simple moving average.
The pair traded as low as 1.1057 and is currently correcting higher. It traded above the 23.6% Fib retracement level of the last decline from the 1.1131 high to 1.1057 low. It seems like there is a major contracting triangle forming with support at 1.1070 on the hourly chart.
The pair is currently struggling to clear the 50% Fib retracement level of the last decline from the 1.1131 high to 1.1057 low. Once there is a close above 1.1100 and the 21 hourly SMA, the pair would resume its uptrend and move back towards 1.1130.
RBA Meeting Minutes
Recently in Australia, the minutes of the Reserve Bank of Australia (7 November 2017) were released. The market was not looking for any major hawkish tone in Nov 2017 statement.
The actual statement was in line with the forecast. Commenting on the labor market, the report stated that:
Turning to the labour market, members observed that conditions had been surprisingly strong over 2017. Employment growth had been running well above growth in the working-age population and, in preceding months, had been concentrated in full-time employment.
Overall, the AUDNZD pair might attempt an upside break as long as it is above the 1.1070 in the short term.
