Key Points
- The Aussie dollar is currently consolidating gains against the Kiwi Dollar above 1.0675.
- The AUDNZD pair is likely to trade above the range resistance at 1.0700 for further gains.
- Today, the New Zealand Business NZ PMI for Jan 2017 was released by the Business NZ.
- The result was not as expected, as there was a decline from 54.5 to 51.6 in Feb 2017.
AUDNZD Technical Analysis
The Aussie Dollar was seen trading with a positive tone against the Kiwi Dollar and remained supported near 1.0660. There is a range pattern formed with a monster resistance near 1.0700.
The pair recently broke a bearish trend line on the hourly chart at 1.0665, and also moved above the 21 hourly simple moving average. So, there is a possibility that the pair may break the 1.0700 range resistance for further gains.
On the upside, the next resistance could be near the 1.618 extension of the last drop from the 1.0706 high to 1.0633 low at 1.0751. On the downside, the 21 hourly SMA at 1.0675 might now be considered as a buy area.
New Zealand Business NZ PMI
Today in New Zealand, the Business NZ PMI, which presents business conditions in New Zealand was released by the Business NZ. The market was not expecting any decline in the index in Jan 2017.
The result was below the forecast, as there was a decline from 54.5 to 51.6 in Feb 2017. The BusinessNZ’s executive director, Catherine Beard, stated “Those who outlined negative comments noted the Xmas/holiday break playing a sizeable role in reduced activity, as did weather conditions. On the flip side, those who outlined positive comments often did not note anything specific, but more business as usual”.
Overall, there are high chances of AUDNZD breaking the 1.0700 resistance and moving higher towards 1.0750.
