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We’re in for a light data calendar today as most of U.S. session traders are out celebrating Turkey Day.

That doesn’t mean we won’t see volatility though!

Today I’m looking at AUD/NZD’s recent upside breakout on the 1-hour time frame.

Before moving on, ICYMI, today’s Asia-London session watchlist checked out NZD/JPY’s potential resistance area ahead of data releases from Japan and New Zealand. Be sure to check out if it’s still a valid play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Japan’s service prices rise for 8th straight month in October as freight cost spikes

NZ trade deficit widened from 470M NZD to 1.29B NZD in October

AU Q3 CAPEX data disappoints, outlook points to increased spending plans

Asian shares inch lower on faster Fed rate hike schedule bets

German GDP grew slightly less than initial estimates in Q3 2021

Germany’s GfK consumer confidence slips from 1.0 to -1.6 in December

Upcoming Potential Catalysts on the Forex Economic Calendar:

U.S. markets out on Thanksgiving holiday
ECB President Lagarde to give a speech at 1:30 pm GMT
BOE Governor Andrew Bailey to participate in a discussion at 5:00 pm GMT

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

AUD/NZD 1-hour Forex Chart
AUD/NZD 1-hour Forex Chart

After trading in a downtrend in October and a big chunk of November, AUD/NZD has seen an upswing strong enough to break a descending trend line resistance.

Can AUD/NZD extend its gains? Data printed earlier showed that, while Australian CAPEX missed estimates, the outlook pointed to increased spending from major businesses.

It also doesn’t hurt that iron ore – one of Australia’s biggest exports – could see higher prices if China allows more steel production as markets are expecting.

On the other side of the trade, market geeks are still dealing with the RBNZ’s dovish hike.

Potential interest around the bit 1.0500 psychological handle as well as the small bearish divergence on the chart opens AUD/NZD to a break-and-retest opportunity.

If traders don’t feel like pulling back, however, then we could see AUD/NZD extend its gains and revisit October’s highs closer to the 1.0650 mark.