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!
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Fresh Market Headlines & Economic Data:
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
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.