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Checking out this steady trend in AUD/NZD ahead of potential market movers from both Australia and New Zealand.

Before moving on, ICYMI, today’s Daily London Session Watch list looked at an opportunity forming on AUD/CHF to play the risk-on environment, so be sure to check that out!

Intermarket Snapshot

Equity Markets Bond Yields Commodities & Crypto
DAX: 13244.11 -0.02%
FTSE: 7401.43 +0.07%
S&P 500: 3138.12 +0.14%
DJIA: 28102.73 +0.13%
US 10-yr 1.735% -0.029
Bund 10-YR -0.372% -0.022
UK 10-YR: 0.641% -0.056
JPN 10-YR: -0.098% -0.008
Oil: 58.24 +0.40%
Gold: 1457.90 +0.07%
Bitcoin: 7105.00 +0.05%
Etherium: 145.25 +0.01%

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Forex Calendar for U.S. & Asia:

  • Fed Brainard speech at 6:00 pm GMT
  • RBNZ Financial Stability Report at 8:00 pm GMT
  • API Crude oil inventories at 9:30 pm GMT
  • New Zealand Trade balance at 9:45 pm GMT
  • RBNZ Governor Adrian Orr speech at 10:00 pm GMT
  • Australia Construction work q/q at 12:30 am GMT (Nov. 27)
  • China Industrial profits at 1:30 am GMT (Nov. 27)

What to Watch: AUD/NZD

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

Today we’re checking AUD/NZD on the one hour chart ahead of potential catalysts from both New Zealand and Australia in the upcoming Asia trading session. Most notable event of the bunch is a speech from RBNZ Governor Orr on the Financial Stability report, but we could see a little bit of action from the Australian construction data and New Zealand trade balance as well.

From a price action perspective, the chart shows a clear trend in favor of the Kiwi over the Aussie, and as they say, the trend is your friend. So if you’re an AUD/NZD bear, the odds look to be in your favor at the moment, and the scenario to look out for is positive comments from Governor Orr and a disappointing read on Australian construction work. This combination will likely bring on the bears, and with a daily ATR of around 50 pips, the pressure could be enough to break the minor support just above 1.0550 for swing trade opportunity.

For AUD/NZD bulls, it’s gonna take a scenario of both negative comments from Orr and a very big positive surprise from Australia to break the trend lower, and in that situation, a break above the falling ‘highs’ should draw in both momentum traders and profit takers. This would lead to a potential swing opportunity that would likely max out around the next area of interest around 1.0650, for an attractive potential return-on-risk.