13 Feb 2014
AUD/NZD weekly resistance intact
FXStreet (Guatemala) - With the AUD/NZD weekly descending trend line still very much intact, the pair has breached the daily resistance but it has been restricted to a sideways channel between 1.0815 and 1.0874 since the run up from business done at 1.0775.
The main game for the pair is going to be the employment data from the Australian economy. Strategists at TD Securities explained, “We are top of the market at +40k (mkt +15k) and with an unchanged participation rate of 64.6% lowers the unemployment rate to 5.7% (mkt 5.9%, last 5.8%). There will be a Census-based population benchmarking so expect some back revisions”. Meanwhile, we have seen some Second tier data from New Zealand which has not garnered much attention. New Zealand’s Business NZ Performance of Manufacturing Index (PMI) seasonally adjusted for January came at 56.2 vs 56.4 last, recording its 16th consecutive months of expansion.
AUD Bid
The AUD has been firmly advancing following strong Australian house price data and in last Friday’s Statement on Monetary Policy the RBA revised up its forecasts for both growth and inflation. However, strategists at Rabobank noted,” Australia’s economy is still vulnerable to negative shocks from China and based on our concerns for Chinese growth we are maintaining are 12 mth AUD/USD forecast at 0.86”.
DMA’s a bullish bias
The DMA’s are still offering a bullish bias for the pair with RSI (14) reading at the mid point for implications of there being more room to go to the upside.
The main game for the pair is going to be the employment data from the Australian economy. Strategists at TD Securities explained, “We are top of the market at +40k (mkt +15k) and with an unchanged participation rate of 64.6% lowers the unemployment rate to 5.7% (mkt 5.9%, last 5.8%). There will be a Census-based population benchmarking so expect some back revisions”. Meanwhile, we have seen some Second tier data from New Zealand which has not garnered much attention. New Zealand’s Business NZ Performance of Manufacturing Index (PMI) seasonally adjusted for January came at 56.2 vs 56.4 last, recording its 16th consecutive months of expansion.
AUD Bid
The AUD has been firmly advancing following strong Australian house price data and in last Friday’s Statement on Monetary Policy the RBA revised up its forecasts for both growth and inflation. However, strategists at Rabobank noted,” Australia’s economy is still vulnerable to negative shocks from China and based on our concerns for Chinese growth we are maintaining are 12 mth AUD/USD forecast at 0.86”.
DMA’s a bullish bias
The DMA’s are still offering a bullish bias for the pair with RSI (14) reading at the mid point for implications of there being more room to go to the upside.