AUD/NZD hovers around 1.0809 level, mixed picture ahead

The Australian and New Zealand dollars are currently located at what could be a defining moment on the price charts.

The AUD/NZD pair is located at the epicentre of what was formerly a resistance line on the price charts – but which has now become a support line.

The pair is located at around 1.0809, though this could be about to change.

The main key event to have shifted this pair in particular over recent days was an economic data release from Australia.

This release showed that Australian GDP had plummeted by 7% over the course of June, leaving the country in the grip of a recession.

On that occasion, the AUD/NZD pair showed signs of a major dip.

According to analysts, the pair could now go one of two ways after this news.

One key point to remember is that the currency is now at the higher end of a descending resistance line that is five years in length.

Strategists suggest that this could become vital in determining where the pair goes next.

Turning away from price chart analysis, the economic calendar has a number of key moments scheduled in over the coming days.

Friday morning will see a very important data release from Australia.

Retail sales figures for the month of July will be out at 12:30am GMT.

Month on month, these are expected to hold firm at 3.3%.

Traders of the Aussie dollar will be hoping for this development to come through to show signs of hope for the economy – especially given the recent news that the country is officially in recession.

Sunday will see a Performance of Services Index from the Australian Industry Group.

This is due to cover the month of August, and will be released at 10:30pm GMT.

It will focus in particular on how business conditions look in the country’s service industry.

Looking ahead to next week, Monday morning will see a release from ANZ Bank looking at the levels of job adverts in the country – a key look at the performance of the labour market.

This release will come at 1:30am GMT.

The level was last recorded at 16.7%.

On Tuesday morning, there will be more insight into the state of business in the country when the National Australia Bank releases its business confidence survey for August.

This was last noted at -14.

The same bank will reveal its business conditions survey for August in the same time slot.

Both of these releases will come at 1:30am GMT.

While the week will get off to a quiet start for the New Zealand dollar, there will be some action.

Manufacturing sales figures for Q2 2020 will be out at 10:45pm GMT.

This metric was last recorded at -1.7%, though there is currently no indication of where it is likely to go next.

Chris Lee

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