- 1 AUD/NZD – Technical Analysis for Forex Trading
- 1.1 Australia – National Australia Bank (NAB) Limited Business Confidence Index
- 1.2 New Zealand – Gross Domestic Product (GDP)
- 1.3 Trade Recommendation for the AUD/NZD
- 1.4 Top Australian Forex Trading Brokers to trade AUX/NZD
- 1.5 Asif Imtiaz
AUD/NZD – Technical Analysis for Forex Trading
Australia – National Australia Bank (NAB) Limited Business Confidence Index
Tomorrow, at GMT 1:30 a.m., the National Australia Bank (NAB) Limited will release its monthly business confidence index figure. This figure measures the level of a diffusion index based on a survey of 350 businesses in Australia.
The survey asks respondents to rate the current business environment in Australia. Since businesses are the first to react to changing business conditions, the level of their sentiment regarding optimism and business confidence, Forex traders consider it as a leading indicator of the overall economic health in the coming months.
Last month, the NAB business confidence index reading came out at 10, a first double digit figure after several months. If the trend continues, it would likely to have a bullish effect on the Australian Dollar.
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, which measures the changes in the inflation adjusted value of all products and service made in the country over the past quarter.
Since GDP measures the overall productivity in the economy, it acts as a leading indicator of the economic growth in the country. Hence, Forex investors consider the New Zealand’s GDP (q/q) to be an important indicator of the health of the economy.
Last quarter, the New Zealand’s GDP came out at 1.1% growth and the forecast for this quarter is set at a 0.7% growth.
Trade Recommendation for the AUD/NZD
Since forming a bullish pin bar on January 31, the AUD/NZD has remained in a strong uptrend and formed two sharp uptrend lines in the process. After the last retracement, which ended on February 28, the AUD/NZD bullishness accelerated and last week, the pair found resistance near the 1.0915 level.
Earlier today, the AUD/NZD bulls once again tested the 1.0915 level, but so far failed to penetrate above this level.
As the New Zealand’s GDP is expected to grow only 0.7% compared to 1.1% in the previous quarter, but the Australian NAB business confidence index reading has jumped almost double to 10 in the last month, we believe the market fundamentals are suggesting a continuation of the current uptrend.
Hence, if the AUD/NZD price breaks above the 1.0915 the level, it would likely attract additional bullish momentum in the market.
Under the circumstances, it would be recommended that Forex traders consider placing a BUY order at market price for the AUD/NZD with their Forex trading brokers, as soon as it is trading above the 1.0915 level. A possible profit target for this trade would be around the 1.1110 level. On the other hand, Forex traders should consider placing a stop loss order above 1.0790.
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