AUD/NZD in focus ahead of key data from Antipodean nations
Fawad Razaqzada April 18, 2018 6:59 PM
This week’s key macro events are mostly out of the way. However, we still have important data coming from the Antipodean nations in the early hours of Thursday and from Canada on Friday. So, the focus is now going to turn to the commodity currencies.
This week’s key macro events are mostly out of the way. However, we still have important data coming from the Antipodean nations in the early hours of Thursday and from Canada on Friday. So, the focus is now going to turn to the commodity currencies. New Zealand will kick off the data releases with the publication of quarterly CPI this evening. Inflation is expected to have risen by 0.4% in the first three months of the year after climbing 0.1% in the last quarter of 2017. From Australia, we will have key employment figures to look forward to a few hours later. Aussie employment is expected to have risen by 20,300 in March after climbing by 17,500 the month before. Finally, Canadian data will include CPI and retail sales on Friday, with both expected to have risen by 0.4% each month-over-month.
Naturally, the focus in early Asian session will be on the AUD/NZD pair. This cross has actually shown some bullish characteristics in recent days, despite being stuck in a strong downtrend since October. Last week, for example, it managed to hold its own above the long-term bullish trend line, around the 1.0500 handle. And today, it has broken above resistance at 1.0600, taking out a short term bearish trend line in the process. The short-term path of least resistance is now to the upside. But a lot will now depend on the fundamentals and Thursday’s key data releases from both New Zealand and Australia. If after the data releases the AUD/NZD still finds itself above the short-term support level at 1.0600 then this would mean that the bullish remained intact. If it goes and holds below this level a return to long-term support at 1.0500 should not be ruled out. Meanwhile the next levels of resistance come in at 1.0650 followed by 1.0710.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.