A very interesting technical situation is drawn on the daily chart of the AUD/NZD pair. After few days of fairly dynamic correction, the course returned to the perfectly respected upward trend line, which is extending from March 2015. In this place, besides the re-test of the line, we also have local resistance in the form of the previous low and the comparability of corrections. The long upper shadow of the candle from last Friday may suggest a return to declines, in line with the trend that has been going on since August. Although both currencies react in a similar way to the economic data and trade tensions within China and the US, however, in this relation for a long time the New Zealand Dollar has definitely dominated.
Recently, weak GDP readings from Australia turned out to be one of the reasons, as well as a downward revision of these results for the previous quarter from 3.4% to 3.1%. Generally, therefore, coming sesions will show whether the downward trend on AUD/NZD will be continued, today’s candle indicates that it is rather possible.
