Partner Center Find a Broker

AUD/NZD hits the watchlist as we approach another round Australian economic updates. Will minor resistance break on the news or is an uptrend pullback ahead?

Before moving on, ICYMI, today’s Daily U.S. Session Watchlist looked at the downtrend in NZD/USD, so be sure to check that out to see if there is still a potential play!

Intermarket Update:

 

Equity Markets Bond Yields Commodities & Crypto
DAX: 15640.60 -0.23%
FTSE: 7095.09 +0.25%
S&P 500: 4227.26 +0.02%
NASDAQ: 13924.91 +0.31%
US 10-YR: 1.535% -0.035
Bund 10-YR: -0.223% +0.00
UK 10-YR: 0.772% +0.00
JPN 10-YR: 0.075% -0.001
Oil: 70.24 +1.45%
Gold: 1,895.80 -0.15%
Bitcoin: $33,191.75 -6.87%
Ethereum: $2,525.74 -7.05%

Fresh Market Headlines & Economic Data:

S&P 500 ends day flat as benchmark continues to hover near its record

Nearly Half of U.S. Small Businesses Unable to Fill Job Openings

U.S. Job openings reached a series high of 9.3M on the last business day of April – U.S. Bureau of Labor Statistics

U.S. International Trade in Goods and Services for April 2021: -$68.9B vs. -$75.0B in March 2021

U.S. IRS chief asks Congress for authority to collect cryptocurrency transfer data

Canada posts C$594 million trade surplus in April as imports slump

GDP down by 0.3% and employment down by 0.3% in the euro area In the EU, GDP down by 0.1% and employment down by 0.2%

German investor morale falls but strong recovery still expected

Bank of England’s Haldane says job uncertainties are “pretty acute”

Bitcoin slides 7% after U.S. seizes most of Colonial Pipeline ransom

Upcoming Potential Catalysts on the Economic Calendar

RBA Kent speech at 11:30 pm GMT
Australia Consumer Confidence at 12:30 am GMT (June 9)
Australia Building Permits at 1:30 am GMT (June 9)
China Inflation Rate at 1:30 am GMT (June 9)
Australia New Home Sales at 5:00 am am GMT (June 9)
Germany Trade Balance at 6:00 am GMT (June 9)
Japan Machine Tool Orders at 6:00 am GMT (June 9)

What to Watch: AUD/NZD

AUD/NZD 1-Hour Forex Chart
AUD/NZD 1-Hour Forex Chart

On the one hour chart above of AUD/NZD, we can see the pair is currently in an uptrend, now retesting a minor resistance area around the 1.0760 handle that seems to be keeping the bulls at bay now. The question of the day for the short-term players out there is whether this resistance area will break or will it be strong enough to turn the bulls back once again?

Well, that may depend on the upcoming economic data from Australia, giving us updates on consumer confidence and the housing markets, which do tend to be closely watch by traders. Reserve Bank of Australia Assistant Governor Christopher Kent is also giving a speech at the KangaNews Debt Capital Markets Summit during the Asia session, and any surprise comments on monetary policy would likely get the Aussie moving as well. 

So, we’re on the looking out for a round of positive updates from Australia and/or hawkish comments from Kent to potentially go for a long position on AUD/NZD. If that scenario plays out and the market breaks /sustains above the 1.0760 handle, then any kind of support around that area may draw in technical breakout traders to possibly take the pair higher.

Of course, if Assistant Governor Kent talks down any need for monetary policy tapering and/or economic data disappoints, that could mean a short-term turn lower, likely drawing in technical bears who see that resistance forming at the moment and the overbought signal on stochastic. If that plays out, then a move to the rising ‘lows’ pattern within the session is not out of the question given that the daily ATR runs around 40 – 50 pips.