The Australian Dollar (AUD) inched high against the New Zealand Dollar (NZD) after stats concerning the consumer inflation expectation released. It remained 3.6% this month, comparing to 3.1% during the month before, more to what economists had anticipated – i-e 3.2%.
The Consumer Inflation Expectation released by the Melbourne Institute exhibits the consumer desires for future swelling during the following year. The better the standards, the more grounded the impact they will have on a likelihood of a rate climb by the RBA. In this way, a high perusing ought to be taken as positive, or bullish, for the AUD, while low desires are viewed as negative or bearish.
On the other hand, economists remained optimistic with respect o trade balance data and predicted uprise in the said data by giving a value of 4820 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.
The pair continues sinking since last week, which can be seen in the graph below. It is quite likely that the pair will keep sliding downward until or unless it gets a strong reversal.
Trading AUDNZD may be a better idea for a short term position. However, it may get a reversal of around 1.0709 and start declining again. If this happens, trading the pair for a long term position may be avoided.