News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Wall Street
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here:
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here:
  • RT @FxWestwater: Japanese Yen Forecast: JPY Crosses Eye BoJ, CPI as Haven Flows Bolster Yen Strength Link: https:/…
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here:
  • Stocks appear to be in a corrective phase but could get put to the test; levels and lines to watch in the days ahead. Get your weekly equities forecast from @PaulRobinsonFX here:
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here:
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today:
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here:
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here:
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here:
Pending Long AUD/NZD, Awaiting a Push Above Critical Resistance

Pending Long AUD/NZD, Awaiting a Push Above Critical Resistance

Daniel Dubrovsky, Strategist

AUD/NZD Trading Strategy: Pending Long

  • AUD/NZD could be heading higher after failing to push below 2015 support
  • The fundamental landscape seems to favor Australian Dollar gains over NZD
  • A push above key resistance would present an attractive AUD/NZD long setup

Build confidence in your own AUD/NZD strategy with the help of our free guide!

The Australian Dollar has been advancing higher against its New Zealand counterpart over the past couple of months. On the chart below, AUD/NZD tested the 2015 rising support line most recently in April and could be heading higher to 2013 descending channel resistance. There are fundamental reasons that argue the pair may pull this off and presents itself as an attractive long opportunity.

Pending Long AUD/NZD, Awaiting a Push Above Critical Resistance

The Fundamental AUD/NZD Long Argument

Since April, AUD/NZD’s ascent has been accompanied with a widening spread between 10-year Australian and New Zealand government bond yields. In short, this indicates rising interest rate expectations in the former over the latter. Taking a look at the Reserve Bank of New Zealand’s monetary policy stance can help to explain this behavior.

In May, the RBNZ left rates unchanged and switched to a tone that gives an equally balanced view for policy direction. Then, Governor Adrian Orr reiterated that a rate cut is indeed a ‘valid’ possibility ahead. Compared to the Reserve Bank of Australia, this is a relatively dovish shift. The RBA favors its next move as a hike but is patient to act in the meantime.

Signs that the latter is becoming more eager to raise rates could further send AUD/NZD higher. On June 5th, we got a taste of that when a better-than-expected GDP report fueled RBA rate hike bets. Still, the risk for the pair is that Australia’s central bank downplays those increasingly hawkish bets and remains patient on acting. Signs that the RBNZ is favoring a hike ahead also bodes ill for AUD/NZD bullish bets.

Technical Long AUD/NZD Setup

In the meantime, it may be premature to enter long AUD/NZD. Looking at the weekly chart below, the pair remains wedged in-between near-term rising support and descending resistance. Zooming in and looking at the daily chart, we can fine tune a potential trade setup.

Pending Long AUD/NZD, Awaiting a Push Above Critical Resistance

AUD/NZD faces critical resistance ahead which posses as a risk to enter long. This is the May highs between 1.0940 and 1.0959 as well as the descending line going back to mid-November 2017. A break above this area with confirmation would be ideal first before entering long.

In such an instance, the first target for this trade would be the January highs between 1.1057 and 1.1072. Partial or full profit could be taken there before aiming for 2013 channel resistance next. Stops could be placed below the May highs.

In the event that AUD/NZD turns lower, near-term support appears to be the ascending line from early April. A break below that could mean that the pair reverses its ascent over the past couple of months. Confirmation of this could be a push under the June 1st low around 1.0776.

Pending Long AUD/NZD, Awaiting a Push Above Critical Resistance

AUD/NZD Trading Resources:

--- Written by Daniel Dubrovsky, Junior Currency Analyst for

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.