The Australian Dollar (AUD) slid downside against the New Zealand Dollar (NZD) after stats with respect to the interest rate decisions that remained to 0.75% on Wednesday. It remained way lower than the economists had anticipated.

The Reserve Bank of Australia is releasing the RBA Interest Rate Decision. If the RBA is hawkish about the economy’s inflationary outlook and rising interest rates, it is good for the AUD, and bullish. Similarly, if the RBA has a dovish view of the Australian economy and maintains the ongoing interest rate, or cuts the interest rate, it is viewed as negative or bearish.

On the other hand, the Australian Bureau of Statistics releases somewhat favorable news for the Australian dollar. The data tells that the trade balance improved during the last month and stayed around 7180 M, as it was 5926, the month before.

The economists also indicated an uprise in the said data by giving a value of 5000 M. It is to be noted that the trade balance represents the difference between import and export levels of the country. Both imports and exports levels stayed in coherence followed by a reasonable domestic demand in terms of imports and an unchanged or improved demand in exchange for exports of the country. So, the pair is believed to start moving positively.

Since last week, the pair has been pursuing a bullish trend that can be seen in the chart below. It’s quite possible that until or unless it gets a strong reversal the pair will push upwards.

Conclusion

Trading AUDNZD may not be a better idea for a short term position. However, it may get support around 1.0634 and start recovering again. If this happens, trading pair for a long term position would give positive results.