CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open Account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open Account
✖

AUDNZD key FX pair for next week

Article By: ,  Financial Analyst
February 3, 2017 1:22 PM

Next week is all about the Australian and New Zealand dollars. We will hopefully find out which of the two currencies is stronger relative to the other one as central banks of both nations have their policy decisions. In addition, we will hear from governors of both the RBA and RBNZ, not to mention there will be some important data from the region. The volatility in the AUD/NZD therefore should go up by a good few notches. I think at the moment the RBNZ is a touch more dovish than the RBA, so I therefore expect the AUD/NZD to rise in the coming weeks.

Next week’s key fundamental events from the two nations, among other things, include:

  • Monday: Australian Retail Sales, ANZ Job Advertisements and AIG Construction Index  
  • Tuesday: NZ Inflation Expectations; RBA interest rate decision & policy statement and GDT Price Index
  • Wednesday: (Thurs morning NZ time): RBNZ interest rate decision, RBNZ Monetary Policy Statement and RBNZ Press Conference
  • Thursday: Speeches from Governors of RBNZ (Wheeler) and RBA (Lowe)                                            
  • Friday: RBA Monetary Policy Statement

So the economic calendar is jam-packed with data from both nations. It will be almost impossible for traders to predict every fundamental move correctly. But through in technical analysis, the job may become slightly easier. Reaction of price around key levels should provide traders quick feedback if they are right or wrong or about a particular idea. At the moment, the AUD/NZD is basically stuck between a rock and a hard place. Resistance has been provided by the downward-sloping trend line and the 200-day moving average, which is also sloping downwards. The slope of this MA tells us objectively that the trend over the past 200 days have been bearish. Support meanwhile has been provided by the rising trend line. Put another, the AUD/NZD is coiling for a breakout – potentially a big one.

But is the trend turning bullish? Recent price action certainly points that way. So far, two clear attempts from the sellers to push the AUD/NZD below the swing points have failed. Is this telling us that the AUD/NZD has bottomed out? If I was a betting man, I would say that is the case. But I am not. Let’s remain objective and wait for price to tell us if we have seen a bottom. We need to see a break in market structure i.e. when price forms a higher high above 1.0570 or ideally 1.0770 swing high points. Only when this condition is met will the technical outlook turn decisively bullish for the AUD/NZD.

Source: eSignal and FOREX.com.

StoneX Financial Ltd (trading as "FOREX.com") is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, FOREX.com does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date.


This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it. No opinion given in this material constitutes a recommendation by FOREX.com or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.


The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although FOREX.com is not specifically prevented from dealing before providing this material, FOREX.com does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. For further details see our full non-independent research disclaimer and quarterly summary.


CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Financial Ltd. StoneX Financial Ltd is a company incorporated in England and Wales with UK Companies House number 05616586 and with its registered office at 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is authorised and regulated by the Financial Conduct Authority in the UK, with FCA Register Number: 446717.

FOREX.com is a trademark of StoneX Financial Ltd. This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy. FOREX.com products and services are not intended for Belgium residents.

© FOREX.COM 2025