AUD/NZD – Technical Analysis for Binary Options Brokers
New Zealand – Official Cash Rate
On Wednesday, at GMT 8:00 p.m., the Reserve Bank of New Zealand will release the Official Cash Rate, which is the interest rate that banks in New Zealand use to lend funds held at the central bank.
Binary options investors consider the official cash rate to be the most important factor of the valuation of the New Zealand Dollar against other currencies. In fact, most of the other fundamental indicators are considered just to predict future interest rate.
Last month, the RBNZ left the official cash rate at 1.75% and the forecast for this month is that the rate would remain the same at 1.75% in order to boost the slowing New Zealand economy.
Australia – Private Sector Credit
On Friday, at GMT 1:30 a.m., the Reserve Bank of Australia will release the month-over-month Private Sector Credit data, which measures the changes in the total value of new credit issued to consumers and corporations in the country over the previous month.
Binary options traders consider the private sector credit to be an important fundamental indicator of the Australian economy as borrowing and spending are highly correlated. Consumers and businesses only take out credit when they feel confident about their ability to pay it back in the future. Hence, it also acts as a measure of consumer and business confidence.
Last month, the private sector credit in Australia increased by 0.5% and the forecast for this month is currently set at an increase of 0.5% as well.
Since July 2017, the AUD/NZD remained highly bullish and the pair climbed up by around 750 pips and formed a well-respected uptrend line in the process. After reaching near the 1.1150 level at the end of August, the AUD/NZD found strong resistance and started a bearish retracement that pushed the price below the uptrend line. However, after reaching near the 38.2% Fibonacci retracement level of the last upward swing, the pair immediately resumed the uptrend, and the price is currently being held by the resistance near 1.0975.
As the RBNZ is set to keep the key interest rate at 1.75% and the Australian private sector credit is also set to remain unchanged at 0.5%, we believe there will not be any fundamental shift in market sentiments this week and the AUD/NZD price will remain tentative. However, given the latest bullish momentum in the market, if the pair breaks and closes above the 1.0975 level, it would likely continue the uptrend as there is no more resistance zones nearby after 1.0975 level.
Hence, Australian binary options traders should look out for trading opportunities above this major resistance level around 1.0975.
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