- AUD/NZD trades near 1.0415 at the initial Asian trading on Tuesday.
- With both the underlying currencies forming the pair reflecting benefits from the US-China trade progress, symmetrical triangle formation appears on the chart.
- 1.0425 is the resistance that can propel pair to 1.0445 and 1.0460 while downside break of 1.0400 can recall 1.0380 as a quote.
The AUD/NZD pair remains little changed around 1.0415 during early Asian trading on Tuesday. Looking at its moves since week-start, the pair portrays a symmetrical triangle formation as positive news for the US-China trade deal benefited Dollars of Australia and New Zealand alike. While developments concerning a trade accord between the world’s two largest economies can keep offering intermediate moves to the pair, monthly reading of New Zealand Trade Balance will appear next in the pair observers’ radar.
Having declined during Friday on comments from respective central-bank policymakers, the AUD/NZD pair formed a short-term symmetrical triangle pattern on Monday. The reason being, tweets from the US President Donald Trump that confirmed progressive trade talks between the US and China. Trump also tweeted he’ll postpone tariff hike date on China from March 01 while showing readiness to discuss final trade agreement with Chinese President Xi Jinping when he arrives Florida.
With the positive news for their biggest customer China, Dollars of Australia and New Zealand, commonly referred to as antipodeans, registered across the board gains but struggled against each other.
Looking forward, January month New Zealand trade balance, to be released on 21:45 GMT today, will be important for the pair traders in addition to observing the progress of the US-Sino trade deal.
The monthly trade balance reading is likely to offer a $-300 million deficit MoM compared to the previous month surplus of the $264 million. On a yearly basis, the trade deficit may shrink to $-5.496 billion compared to $-5.860 billion during the first month of the year 2019. Additionally, imports are likely to have declined to $5.00 billion against $5.22 billion registered in December whereas exports could show higher deterioration with $4.80 billion figure versus $5.48 billion prior.
AUD/NZD Technical Analysis
The symmetrical triangle resistance, at 1.0425, acts as a trigger to the pair’s rise toward 1.0445, 1.0460 and 1.0490.
Alternatively, a downside break of 1.0400 can quickly drag the quote to 1.0380 and 1.0365 supports.
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