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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.43% 🇯🇵JPY: 0.40% 🇦🇺AUD: 0.26% 🇨🇭CHF: 0.20% 🇪🇺EUR: 0.04% 🇬🇧GBP: -0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/n3FcbuVcA2
  • USD/JPY gives back the advance from the start of the week amid the recent weakness in longer-dated US Treasury yields. Get your $USDJPY market update from @DavidJSong here:https://t.co/MATXnuFhaS https://t.co/GEZXU08vy3
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.16% France 40: 0.05% Germany 30: 0.03% US 500: 0.00% Wall Street: -0.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/hFqNoqtboO
  • it never ends :s https://t.co/kHS7Smk398
  • RT @JakeSherman: 🚨🚨 Manchin a no on billionaire tax! After Sinema was a no on raising marginal and corporate rates.
  • RT @DeItaone: NRF SAYS EXPECTS RETAILERS WILL HIRE BETWEEN 500,000 AND 665,000 SEASONAL WORKERS
  • BoC's Macklem - There is likely less excess supply in the economy than we thought there would be - Evidence suggests higher prices are not becoming embedded in expectations of ongoing inflation - reasonable tp expect reinvestment phase last until at least we raise rates $CAD
  • The @bankofcanada decided to hold rates constant at 0.25% which is in line with market expectations. Get your market update from @WVenketas here:https://t.co/nl1xnTe4hG https://t.co/IcDPRZOhRh
  • Libya's NOC has major leak in Es Sider Pipeline, requiring 7-10 day shutdown for maintenance - NOC Media Office
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.42% 🇯🇵JPY: 0.38% 🇨🇭CHF: 0.24% 🇦🇺AUD: 0.08% 🇳🇿NZD: -0.01% 🇬🇧GBP: -0.32% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/y4jjMS9cR8
Australian Dollar Outlook Bearish as AUD/NZD Resumes Retreat

Australian Dollar Outlook Bearish as AUD/NZD Resumes Retreat

Dimitri Zabelin, Analyst

Australian Dollar, New Zealand Dollar, AUD/NZD Outlook – TALKING POINTS

AUD/NZD OUTLOOK

After suffering a five percent decline after topping in early-November, AUD/NZD stabilized around 1.0324 and recently retested resistance at 1.0484. However, after the pair closed just on the edge of it, AUD/NZD promptly plunged after the RBNZ rate decision and may now be heading towards a floor it just got up from. However, scope for further losses is not capped at that multi-tiered support zone between 1.0324-1.0308.

A downside breakout there could open the door to retesting the August 2019 swing-low at 1.0283 (gold-dotted line). This makes the prospect of a recovery that much more formidable since the layers of resistance become that much more difficult to surmount as AUD/NZD delves deeper into the abyss. A wider timeframe also underscores the significance of what further downside losses could mean for AUD/NZD’s trajectory.

AUD/NZD – Daily Chart

Chart showing AUD/NZD

AUD/NZD chart created using TradingView

Looking at a monthly chart shows the pair is forming a continuation pattern known as a Symmetrical Triangle. Given the preceding downtrend, the model suggests AUD/NZD may be in store for an aggressive selloff if the pair break the lower range (red channel) with follow-through. Looking ahead, a key data release out of Australia may be instrumental in pressuring AUD/NZD closer to testing key support.

AUD/NZD – Monthly Chart

Chart showing AUD/NZD

AUD/NZD chart created using TradingView

AUSTRALIA JOBS DATA

Next week, Australian jobs data – which has tended to induce volatility in AUD crosses – will be published with expectations of a 10.0k employment change. This is markedly lower than the prior 28.9k print with analysts estimating the unemployment rate rising from 5.1 to 5.2 percent for January.

Softer-than-expected prints could inflate rate cut bets and further pressure AUD/NZD as the trajectory for monetary policy between the RBA and RBNZ diverge.

AUSTRALIAN DOLLAR TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

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

DISCLOSURES