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- The AUD / NZD pair started Wednesday's Asian trading session with less gains around 1.0530.
- The monthly publication of the Australian Westpac Consumer Confidence Index, followed by the RBNZ's monetary policy meeting, will follow closely.
- The pair must overcome the resistance of 1.0540 otherwise its return to the 1.0500 support line can not be denied.
Australian dollar (AUD) trade was little changed around 1.0530 against the New Zealand dollar (NZD), while Asian trade started on Wednesday. The pair posted gains on Tuesday, the renewed hope regarding the US-China trade deal and the welcome results from surveys of Australian companies helping to create a positive climate. For now, traders are waiting for the monthly publication of the Westpac index of Australian consumer confidence before tightening their belts to receive the quarterly monetary policy statement from the Reserve Bank of New Zealand ( RBNZ).
The monthly publication of the National Australia Bank's business survey revealed that economic conditions had risen from 3 to 3 before and business confidence had dropped from 3 to 3 last December. The news reinforced the initial sentiment of rising AUD / NZD on Tuesday morning.
These measures were later postponed after US President Donald Trump announced a better chance of securing a trade deal between China and China at a rally in Mexico. The news appealed to Australian traders because anything that is positive for the biggest Australian consumer is also good for the AUD.
In the future, Westpac's consumer sentiment in February and the results of the RBNZ's monetary policy meeting will be closely followed by a new impetus. Westpac's consumer confidence data dropped to -4.7% last month, while the RBNZ is expected to show a bearish bias with no change in current monetary policy.
The latest New Zealand statistics, such as last week's employment figures, previous inflation figures and third quarter GDP growth, all point to a direction, that is, a party. taken bearish from the RBNZ. National data, but also uncertainty over the US-China trade deal and the pessimism surrounding global economic growth could also push the New Zealand central bank to comply with the dubious claims of the US. the Reserve Bank of Australia (RBA) despite maintaining their "no immediate rate change". perspective.
While weaker AU data could trigger the withdrawal of the AUD / NZD, a dovish RBNZ prospect and / or the governor's bearish statements, after the exchange rate announcement one hour later, could continue to feed the pair to the north.
AUD / NZD Technical Analysis
Unless a decisive break above 1.0540 is offered, the pair is less likely to target resistance levels 1.0565 and 1.0600, while 1.0620 and 1.0645 may limit the increase after 1.0565. , 0600.
An upward trend line at 1.0500 seems an immediate support for the pair, a break of it can highlight 1.0480 and 1.0455 points of rest.
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