Home Forex News AUD/USD NZD/USD Trying To Breakout Amid Dollar Weakness

AUD/USD NZD/USD Trying To Breakout Amid Dollar Weakness

  • Australia Weak Economic data
  • Improving NZ Housing Sector
  • China Upbeat Data

Australian and New Zeeland Dollar were flat against the Dollar, Wednesday morning, as traders reacted to a bunch of mixed economic releases. The pair had initially raced BY more than 0.3% as traders shunned risk sentiments to bet on riskier currencies.

AUD/USD Outlook

The Australian Dollar was flat after struggling to hold on to gains above the Dollar’s 0.69 level. The AUD has come under pressure this week as traders remain concerned about the Australia economy amid a spike in new coronavirus cases in the country as well as in the U.S.

Time                            : 07-01-2020

Pivot                           : 0.6882

Technical View           : Long Above 0.6902

Target                         : 0.6922 next 3 targets are 0.6947, 0.6972 and 0.7022

Comments                  : Weak Bullish

Last Price                    : 0.6900

A string of weak economic data has continued to weigh heavily on the AUD strength. For starters, data published shows that Building permits in Australia fell by 16.4% in May compared to an expected 10% decline. The downbeat reading weighed heavily on AUD sentiments. However, the AUD received some boost on China’s Caixin PMI beating expectation coming in at 51.2 against 50.5 expected. It was also an improvement from May’s print of 50.7.

The AUD/USD is struggling for direction as a spike in coronavirus infections in the State of Victoria continues to spook traders. Similarly, a decline in the U.S stock futures continues to keep AUD bulls at bay.

NZD/USD Outlook

The New Zealand dollar, on the other hand, is struggling to register gains against the greenback despite macro data signaling that the housing sector is doing much better. Immediate data indicate that the number of new homes consented in May increased by 64% to 3,554. This was the highest reading since May 2019

The above-forecast building permits failed to lift the Kiwi, which remained under pressure Wednesday morning against the Dollar.

The NZD/USD pair had initially rallied by more than 0.53% as China printed better than expected PMI data signaling ongoing economic recovery.

Time                            : 07-01-2020

Pivot                           : 0.6433

Technical View           : Long Above 0.6453

Target                         : 0.6473 next 3 targets are 0.6496, 0.6517 and 0.6565

Comments                  : Weak Bullish

Last Price                    : 0.6456

Wednesday promises to be another busy day for the U.S dollar, given the array of economic releases scheduled. Markit Manufacturing PMI Final and ISM Manufacturing PMI should sway traders’ sentiments on the greenback conversely influence AUD/USD and NZD/USD direction of trade. Traders also await Fed Evans’s speech.


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