AUD/NZD Continue to Test Key Support Near 1.0500 Amid Declining House Prices in Australia

AUDNZD  Forecast & Technical Analysis for Australian binary options

Australia – House Price Index

On Tuesday, at GMT 1:30 a.m., the Australian Bureau of Statistics released the House Price Index (HPI). It measures the changes in the selling price of houses in the 8 state capitals in Australia.

Rising house prices indicate that investors are confident about purchasing houses. Hence, High low binary traders consider the HPI to be a leading indicator of investor confidence in the country. The HPI is usually released every three months in a quarter-over-quarter format.

Last month, the Australian HPI suggested that house prices in Australia’s 8 state capitals decreased by -2.4%. The forecast for this month was set to decrease by -2.5%. However, the actual figure came out much worse than expected, at -3.0%.

New Zealand – Gross Domestic Product (GDP)

On Wednesday, at GMT 10:45 p.m., the Statistics New Zealand will release the quarter-over-quarter GDP. It measures the changes in the inflation-adjusted value of all products and service made in the country over the past quarter.

The GDP measures the overall productivity in the economy. It acts as a leading indicator of the economic growth in the country. Hence, binary options investors consider New Zealand’s GDP (q/q) to be an important indicator of the health of the economy.

Last quarter, New Zealand’s GDP came out at 0.6% growth, double compared to 0.3% in the previous quarter. If the trend continues, it will have a positive impact on the New Zealand Dollar.

AUDNZD Forecast

AUDNZD Forecast - June 18 2019

The AUD/NZD reached the high of 1.0732 on April 17, 2019. Since then, it started a bearish retracement. Over the last month, the AUD/NZD fell to the 50% Fibonacci retracement level near 1.0500. In the last two weeks, it tested the 1.0500 level several times. However, so far, the pair failed to make clear break below this support level. Currently, it is once again testing the 1.0500 level.

The House Price Index in Australia declined by -3.0%, more than the forecast of -2.5%. On the other hand, the GDP of New Zealand doubled in the last quarter and it will likely remain positive this quarter. We believe it would set a bearish fundamental outlook for the AUDNZD this week. Therefore, if the AUDNZD closes below the support near 1.0500, it would likely attract additional bearish momentum in the market.

Hence, HighLow binary options traders should look out for trading opportunities below this major support level around 1.0500.

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