AUD/NZD Bulls May Push Price Above Key Resistance if New Zealand Trade Balance Slips

AUDUSD – Technical Analysis for GoMarkets

Australia – CB Leading Index

On Monday, at GMT 2:30 p.m., the Conference Board Inc will release the month-over-month leading index for Australia. It measures the changes in the level of a composite index based seven other major fundamental indicators.

The CB leading index aggregates some of the other indicator data. So, binary options traders consider this to be an important representation of the overall Australian economy. However, most of these data are previously released. Hence, the CB leading index usually to have an immediate market impact.

Last month, the CB leading index decreased by -0.1%. If the negative trend continues this month, it would likely have a bearish influence on the Australian Dollar against other major currencies.

New Zealand – Trade Balance

On Thursday, at GMT 10:45 p.m., the Statistics New Zealand released the national trade balance figure. It measures the difference of the value between net import and net export of the country during the previous month.

The export of a country is directly correlated to the demand for its currency. So, a positive trade balance figure indicates that foreigners had to buy more local (NZD) currency in exchange of their domestic currency. Hence, economists and binary options investors consider the trade balance to be an important indicator of the health of the New Zealand’s economy.

Last month, the trade balance figure of New Zealand came out at $217 million. This month, the forecast is set a much lower figure, at $200 million.

AUD/NZD Forecast

AUDNZD Forecast for the broker Go Markets

Since forming a bullish outside bar (BUOB) on October 24, 2017, the AUD/NZD remained mostly bearish. During the last six months, the AUD/NZD fell by around 790 pips and formed two downtrend lines in the process. However, after reaching the 1.0500 level, it found a strong support and started a bullish retracement. Over the last two weeks, the AUD/NZD climbed by around 180 pips and broke above the second downtrend line. Soon, it found a strong resistance around the 1.0670 level.

The Australian CB leading index fell by -0.1% last month and the trend lines bearish. On the other hand, analysts are expecting the New Zealand’s trade balance to slip from $217 million to $200 million over the last month. We believe it would set a bullish fundamental outlook for the AUD/NZD this week. Therefore, if the AUD/NZD closes above the resistance near1.0670, it would likely attract additional bullish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities above this major resistance level around 1.0670.

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