AUD/NZD Tests Key Resistance as Business Confidence in New Zealand Remains Soft

AUDUSD – Technical Analysis for Australian Forex Brokers

New Zealand – ANZ Business Confidence

On Thursday at GMT 1:00 a.m., the Australia and New Zealand (ANZ) bank will release its business outlook report. It measures the business confidence in the New Zealand in terms of the level of a diffusion index by surveying around 1,500 businesses in the country.

The survey includes various manufacturers, builders, retailers, agricultural firms, and service providers. Hence, Australian forex brokers consider this index to be a leading indicator of the economic health of the country.

Last month, the ANZ business confidence index came out at -44.9. If the negative reading continues this month, it will likely have a bearish effect on the New Zealand Dollar.

Australia – Building Approvals

On Thursday, at GMT 1:30 a.m., the Australian Bureau of Statistics will release the national month-over-month building approvals figure. It measures the changes in the number of approvals of new buildings.

A build permit indicates new construction work. It also suggests that there would be additional positive economic activities. For example, new jobs would be created for construction workers. Therefore, binary options traders consider this data regarding new building approvals to be a leading indicator of the overall economic health of the country.

Last month, the building approvals figure increased by 6.4%. Analysts are expecting it to decrease by -1.9%.

AUD/NZD Forecast

AUD/NZD for Australian forex brokers - August 27

Since forming a pin bar on June 19, the AUD/NZD remained highly bullish. Over the last three months, the AUD/NZD climbed up by around 500 pips. However, after reaching near the 1.1175 level, it found a strong resistance and fell to the support near 1.0900. Over the last few days, it has climbed up to test the pivot zone around 1.0975.

The ANZ Business Confidence reading for New Zealand came out at -44.9 last month and it’s on a downtrend. On the other hand, the Australian Building Approvals figure is expected to go down by -1.9% last months. We believe it would set a bullish fundamental outlook for the AUD/NZD this week. Therefore, if the AUD/NZD closes above the resistance near 1.0975, it would likely attract additional bullish momentum in the market.

Hence, Australian forex brokers should look out for trading opportunities above this major resistance level around 1.0975.

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