AUD/NZD Likely to Break Above Major Resistance if Australian Trade Balance Go Up

AUD/NZD – Technical Analysis for Binary Options Brokers

New Zealand – ANZ Business Confidence

On Tuesday, at GMT 12:00 a.m., the Australia and New Zealand (ANZ) bank will release its business outlook report that measures the business confidence in the New Zealand in terms of the level of a diffusion index by surveying around 1,500 businesses in the country.

Since the survey includes various manufacturers, builders, retailers, agricultural firms, and service providers; binary options brokers consider this index to be a leading indicator of the economic health of the country.

Last month, the ANZ business confidence index remained unchanged at 0.00, a huge drop compared to the reading of 18.3 in August.

Australian – Trade Balance

On Thursday, at GMT 12:30 a.m., The Australian Bureau of Statistics will release the monthly Trade Balance figure, which measures the difference in value between all import and export, including physical goods and intangible services.

Since the demand for export is directly correlated with the demand for the Australian Dollar, binary options traders analyse the monthly trade balance in order to gauge the strength of the AUD against other major currencies.

Last month, the Australian trade balance figure came out at 0.99 billion and the forecast for this month is currently set a slightly better figure, at 1.20 billion.

AUD/NZD Forecast

AUD/NZD Analysis for binary options brokers - 31st October 2'17

Since the middle of June 2017, the AUD/NZD remained in a strong uptrend and climbed up by around 900 pips over the last few months. However, after reaching near the 1.1260 level in October, the pair found a strong resistance and retraced back to the 161.8% Fibonacci retracement level of the last major upward swing.

As the Australian trade balance is expected to increase to 1.2 billion, but the ANZ business confidence dropped to 0.0 in the last month, we believe it would set a bullish fundamental outlook for the AUD/NZD this week. Therefore, if the AUD/NZD closes above the resistance near 1.1260, it would likely attract additional bullish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities above this major resistance level around 1.1260.

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Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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