The Australian Dollar (AUD) inched higher against the New Zealand Dollar (NZD) on Monday, increasing the price of AUDNZD to more than 1.0700 following some key economic releases. The technical bias shall remain bearish because of the higher low in the recent upside move.

AUD/NZD Technical Analysis

As of this writing, the pair is being traded around 1.0789. A resistance can be noted around 1.0862, a trendline resistance level ahead of 1.0942 the 38.2% Fib level resistance and then 1.0987, another key horizontal resistance area as demonstrated in the given below chart.

On the downside, a support can be noted near 1.0721, an immediate horizontal support level ahead of 1.0562, the trendline support level and then 1.0369, the key level support as demonstrated in the given above chart. The technical bias shall remain bearish as long as the 1.0938 the horizontal resistance level remains intact.

Australian Home Loan News

In Australia, the average figure in respect of the amount taken for homes as a loan remained 0.4 percent in July, as compared to -1.1 percent during the month before, up beating the economist expectation which was 0.0 percent. The data is copied from the news released by the Australian Bureau of Statistics.

The figure represents the overall trend of the housing market in Australia. It also shows the level of confidence consumers have on the strength or purchasing power of the Australian Dollar (AUD). If large amounts are taken out as home loans then this shows a positive trend for the Australia Dollar (AUD). Generally speaking, a high reading in this regard is considered as bullish for the Aussie Dollar (AUD) whereas a lower reading implies a bearish market for the Aussie Dollar (AUD).

Trade Idea

Considering the overall price behavior of the pair over the last few weeks, selling the AUDNZD around current levels may be a good decision in short to medium term.