FxWirePro: Aussie Gains Against Major Peers on Robust Housing, Private Sector Credit
- AUD/NZD is trading around 1.0760 marks.
- Pair made intraday high at 1.0764 and low at 1.0697 marks.
- Today Australia released building approval data with positive numbers at 3.0% m/m vs 2.9% m/m previous release. In addition, private sector credit rose to 0.5% m/m vs 0.4% m/m previous release.
- On the other side, Australia’s first quarter current account reached a deficit of A$20.8 billion, wider than the deficit of A$19.3 billion expected.
- Intraday bias remains neutral for the moment.
- A daily close below 1.0696 will take the parity down towards key support around 1.0574 (February 12, 2016 low) and 1.0506 marks respectively.
- On the other side, a sustained close above 1.0751 is required to drag the parity higher towards 1.0823/1.0976 (January 2016 high) /1.1062 (30D EMA)/1.1123/1.1298/1.1317 levels respectively.
- Important to note here that, 20D, 30D and 55D EMA heads down and confirms bearish trend in a daily chart. Current upside movement is short term trend correction only.
We prefer to take short position in AUD/NZD around 1.0760, stop loss 1.0806 and target 1.0654 levels.