Without major economic catalysts around the corner, we’re checking out this technical setup on AUD/NZD that both short-term and swing players can check out. Will the recent bounce draw in sellers into the downtrend?
Before moving on, ICYMI, today’s Daily U.S. Session Watchlist looked at EUR/USD ahead of major U.S. economic updates, 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
New Zealand Overseas Trade Index at 6:45 pm GMT
South Korea GDP & Inflation Rate at 11:00 pm GMT
Australia Trade Balance at 1:30 am GMT (Sept. 2)
Spain Unemployment Change at 7:00 am GMT (Sept. 2)
Euro area at PPI at 9:00 am GMT (Sept. 2)
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: AUD/NZD
On the one hour chart of AUD/NZD above, we’ve got a slow and steady grind lower that took a quick turn to the upside in today’s trading session.
This is likely a reaction to a better-than-expected GDP update from Australia for the second quarter of 2021, and ignoring expectations that growth will slow in the third quarter.
The pair is now trading at a technical area of significance, where a falling ‘highs’ pattern is intersecting with a recent consolidation area that held the bulls back at the end of August.
We’ve also got the stochastic indicator showing short-term oversold signal, adding to the argument that we may see technical resistance within the next session or two.
So we’ll be on the lookout for bearish patterns to form before considering a short positions. We’ve got low tier economic data from both New Zealand and Australia on the way, but they’re not likely to move the pair.
What’s more likely to move AUD/NZD is any fresh pandemic updates, especially any signs of decelerating cases that may further support New Zealand’s easing out of lockdown and/or accelerating case counts in Australia that further supports extended lockdowns there.