AUD/NZD Uptrend Likely Continue Amid Substantial Increase in Australian Company Operating Profits

AUD/NZD  Forecast & Technical Analysis for Australian binary options

Australia – Company Operating Profits

On Monday, at GMT 1:30 a.m., the Australian Bureau of Statistics released the quarter-over-quarter company operating profits statistics. It measures the changes in the total value of profits earned by Australian corporations over the past quarter.

HighLow Australia traders and global market participants consider this data to be an important leading indicator of the Australian economy. Because company earnings provide an early signal regarding future economic activities. Such as the level of corporate budget and spending and job creation. Furthermore, company earnings are directly correlated with future investments made by the private sector as well.

Last quarter, Australia’s company operating profits decreased by 1.4%. This quarter, analysts were expecting it to decrease by -6.0%. However, the actual figure suggested an increase of 15.0%.

New Zealand – GDT Price Index

On Tuesday., the Global Dairy Trade will release the GDT price index. It measures the changes in the average price of dairy products sold at auction in New Zealand.

The bulk of New Zealand’s exports to the world market consists of dairy products. The rising price of dairy products ensures that foreign buyers have to purchase it at a higher price. The GDT price index acts as a leading indicator of the country’s trade balance. Hence, Go Markets binary options investors use this data to predict future trade balance. As it helps in the valuation of the New Zealand Dollar against other major currencies.

Last period, the GDT price index decreased by -1.7% If the figure declines again this month, it will likely have a bearish effect on the New Zealand Dollar.

AUD/NZD Forecast

AUD/NZD Forecast - Monthly Chart - 2nd September 2020

The AUD/NZD remained in an uptrend since the middle of March 2020. Over the last few months, it has climbed up by around 1050 pips. In August 2020, it reached the 1.2025 level and found a strong resistance. Over the last month, it mostly ranged between 1.0900 and 1.1025. Currently, it is trading near the bottom of this range and likely to test the 1.0900 level once again.

The Australian Company Operating Profits went above much higher than expected, a 15% jump. On the other hand, the New Zealand GDT price index remained negative last month. Even if it turns positive, the rebound in private sector profit in Australia would have a high impact on the AUD/NZD. We believe it would set a bullish fundamental outlook for the AUD/NZD this week. Therefore, if the AUD/NZD remains above the support near 1.0900, it would likely attract additional bullish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities above this major support level around 1.0900. If we see the AUD/NZD climbing above the 1.1025 level, it would present an opportunity to consider increasing the exposure.

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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