6 Sep 2013
AUD/NZD spikes lower on dismal Australian data
FXstreet.com (Athens)- The AUD/NZD is trading downwards for a third consecutive day, on discouraging release of Australian Construction Index.
AUD/NZD lower on a third consecutive day on new dismal Australian data ahead of elections
The pair lost solid ground after the much weaker than expected release of the Australian Construction Index.Elaborating on, the Australian Industry Group/Housing Industry Association Australian Performance of Construction Index registered 43.7 in August, down slightly by 0.4 points on the July reading (readings below 50 indicate a contraction in activity). But what is of major significance is that the index has now been in negative territory for 39 consecutive months. All in all, that was the third time this week we had poor released data from Australia. While we are ahead of the crucial Australian election, which might give a boost to the general sentiment, there is also much anxiety on the constant dismal Australian data. Traders should take into consideration the following article regarding the ‘Aussie’ http://www.fxstreet.com/news/forex-news/article.aspx?storyid=8bbd81a9-029b-42db-bc27-4713b06e2b8d
Technical Outlook and Strategic Bias on AUD/NZD
RBS FX Strategist Greg Gibbs, suggests that ““We doubt there will be much improvement in business confidence and this will limit the potential for a further significant recovery in AUD. We are wary of potential further weakness in EM markets and fear that the recent recovery in China may falter again later in the year.” And that ““As such see AUD again stalling at it approached 0.92/0.93.” At the time of writing, the pair is trading at 1.1534, down 0.28% and very close to its daily low of 1.1532. Daily pivot point support can be found at 1.1515, 1.1486, 1.1457 and resistance at 1.1600, 1.1629, 1.1658, respectively.
AUD/NZD lower on a third consecutive day on new dismal Australian data ahead of elections
The pair lost solid ground after the much weaker than expected release of the Australian Construction Index.Elaborating on, the Australian Industry Group/Housing Industry Association Australian Performance of Construction Index registered 43.7 in August, down slightly by 0.4 points on the July reading (readings below 50 indicate a contraction in activity). But what is of major significance is that the index has now been in negative territory for 39 consecutive months. All in all, that was the third time this week we had poor released data from Australia. While we are ahead of the crucial Australian election, which might give a boost to the general sentiment, there is also much anxiety on the constant dismal Australian data. Traders should take into consideration the following article regarding the ‘Aussie’ http://www.fxstreet.com/news/forex-news/article.aspx?storyid=8bbd81a9-029b-42db-bc27-4713b06e2b8d
Technical Outlook and Strategic Bias on AUD/NZD
RBS FX Strategist Greg Gibbs, suggests that ““We doubt there will be much improvement in business confidence and this will limit the potential for a further significant recovery in AUD. We are wary of potential further weakness in EM markets and fear that the recent recovery in China may falter again later in the year.” And that ““As such see AUD again stalling at it approached 0.92/0.93.” At the time of writing, the pair is trading at 1.1534, down 0.28% and very close to its daily low of 1.1532. Daily pivot point support can be found at 1.1515, 1.1486, 1.1457 and resistance at 1.1600, 1.1629, 1.1658, respectively.