The Australian Dollar (AUD) appreciated against the NewZealand Dollar (NZD) on Tuesday, shortly after the financial announcement of the RBA interest rate. The price printed the bearish candle for more than a week, but today’s price goes up to more than 1.0400. However, due to the recent higher low-upside move, the technical bias may remain bearish.
Australia’s Reserve Bank publishes the RBA Interest Rate Decision that meets the 0.75 percent expectation of economists. As if the RBA is hawkish about the economy’s inflationary outlook and rising interest rates, it’s positive for the AUD and bullish.
Similarly, the Australian Statistics Bureau also releases the Australian dollar’s favorable news. The data indicates that during the last month, the trade balance improved and remained around 7180 M, as it was 5926 the month before.
On the other hand, the building permits issued by the Australian Statistics Bureau show that the number of permits for new construction projects falls sharply from 7.5% to -8.1%, which tends to cause AUD instability. The lesser the number of licenses, the more negative the AUD will have.
The pair has been pursuing a bearish trend since last week that can be seen in the above chart. It’s quite possible that the pair won’t push up until or unless it gets a strong reversal.
Trading AUDNZD for a short-term place may not be a better strategy. It can get support around 1.0261, however, and begin to recover again. If this happens, it would give positive results to trading a pair for a long-term position.