AUD/NZD Ticks Up After New Zealand’s Business Confidence Drops to Fresh Lows

Home » AUD/NZD Ticks Up After New Zealand’s Business Confidence Drops to Fresh Lows

New Zealand – ANZ Business Confidence

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

The survey includes various manufacturers, builders, retailers, agricultural firms, and service providers. Hence, Forex traders consider this index to be a leading indicator of the economic health of the country.

Last month, the ANZ business confidence index came out at -3.8. This month, it came out at -14.2, indicating a bearish New Zealand Dollar.

Australia – Building Approvals

On Monday, at GMT 9:30 p.m., the Australian Bureau of Statistics released the national month-over-month building approvals figure. It measures the changes in the number of approvals of new buildings.

A building permit indicates new construction work. It also suggests that there would be additional positive economic activities. For example, new jobs would be created for construction workers. Therefore, binary options investors consider this data regarding new building approvals to be a leading indicator of the overall economic health of the country. 

Last month, the building approvals figure decreased by -5.5%. This month, the forecast was set at -5.0% growth. However, the actual figure came out way lower, at -8.6%.

AUD/NZD Forecast

The AUD/NZD remained bearish since the end of March 2021. Over the last few months, it went down by around 600 pips or 5.5%. Yesterday, it fell to a fresh low of 1.0345 but soon started a bullish retracement. Currently, it is trading near the 10 periods Moving Average and inching towards the resistance near the 1.0470 level.

the Australian building approval figure dropped by -8.6%. But at the same time, the New Zeland’s ANZ Business Confidence fell to -14.2. 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 the 1.04700 level, it would likely attract additional bullish momentum in the market.

Hence, binary options traders should look out for trading opportunities above this major resistance level around 1.0470.

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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