Key Points
- The Aussie dollar after trading as high as 1.0635 against the New Zealand Dollar started a correction.
- There is a bullish trend line formed on the hourly chart of the AUDNZD pair, which may provide support on the downside.
- The Australian trade balance was released by the Australian Bureau of Statistics today.
- The market was expecting a trade deficit of -2,300M in August 2016, but it came in at -2,010M.
AUDNZD Technical Analysis
The Aussie dollar recently traded towards 1.0640 versus the New Zealand Dollar, where it found sellers. The AUDNZD pair started a correction and currently approaching a bullish trend line formed on the hourly chart.
The 21 hourly simple moving average is also on the downside, waiting to act as a support along with the 38.2% Fib retracement level of the last wave from the 1.0509 low to 1.0635 high.
One may consider buying dips in AUDNZD, as long as it is above the 1.0580-550 support area.
Overall, it looks like the Aussie dollar may decline in the short term, but remains supported near 1.0580 versus the NZD.
– Guest Post Submitted By Aayush Jindal from the FXTimes Team
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