By Forex Signs, Inc.
The pair AUDNZD remains within the bullish channel, as price is consolidating between immediate support level 1.3243 and immediate resistance level 1.3292. Although price is testing the immediate support, buy bias remains in the mid term as prices remain within the bullish channel. If price makes a break below the immediate support it could be on a bearish correction testing 1.3207. If price continues to break 1.3207 below the bottom line of the bullish channel it may lead to a bearish reversal and the buy bias would be insignificant. If price breaches the immediate resistance, it will confirm the bullish trend and buy bias.
Asian Session Outlook
The overall outcome of yesterday’s Asian session was bearish. The performance of Japanese yen flunked against USD and EUR, Kiwi fought really hard also but came short, and the Aussie flipped a little against USD however it soared high against euro. The pessimistic movements are most likely attributed to the recently released economic indicators and news gathered in their respective regions. The Tankan Manufacturing Index for instance excruciatingly hurt the yen as it dropped 3 points for the fourth quarter. While other indicators are still not released, the current events that occurred such as the bad weather that damaged the Canola farm in Aussie has placed its futures contract at risk and thus affect the export industry.
For today’s session, the Aussie dollar is hoping that the awaited release of HIA New Home Sales for the month of October has increased in order to help it appreciate in the market. Previous data given by the Housing Industry Association was noted at 2.4 percent from a -1.7. The augmentation moved AUD in an optimistic level at the time of release.
More, moving upward towards the land of the rising sun, traders are waiting for the Monetary Policy Statement. Yen is expectant that Bank of Japan will release a statement that can help the currency rebound against its counterparts. After the negative feedback by traders due to the release of Tankan Manufacturing Index, yen is positive that they can gain back traders’ confidence with Monetary Policy Statement. Forecast shows that BoJ won’t implement new measures that can harm value of yen.
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