Here are the key factors to keep in mind today for Australian Dollar trades:
- Australian Westpac Consumer Confidence Index: The Westpac Consumer Confidence Index rose 8.0% in February which is a very positive sign for the Australian economy. An increase in confidence is likely to result in an increase in consumer spending. A stronger Australian currency should be possible by the end of February. The strong reading in February follows a solid increase of 2.4% reported in January.
- Australian Home Loans: Home loans surged 2.7% in December which was much higher than the 2.0% increase economists predicted. This is a nice turnaround from the 0.7% contraction reported in December. This data also supports a rally in the Australian Dollar.
- Australian Investment Lending: Investment lending sky rocketed 6.0% in December and the value of loans rose 3.8%. This is a very healthy development for the Australian economy and more than made up for the 2.2% contraction in investment lending reported in November where the value of loans contracted by 0.2%.
Here is the key factor to keep in mind today for New Zealand Dollar trades:
- New Zealand Card Spending: New Zealand Card spending rose 0.1% in January, but retail card spending contracted 0.4% against expectations for an increase of 0.2%. This is the second weak report out of New Zealand on the consumer.
- REINZ House Price Index: The REINZ House Price Index contracted 1.0% in January as compared to December, but rose 7.5% annualized. REINZ House Sales rose 2.6% year-over-year. This can be compared to the 1.0% monthly contraction reported in December, annualized increase of 6.0% and surge of 24.2% in house sales.
Should price action for the AUDNZD remain inside the or breakout above the 1.0425 to 1.0500 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0460
- Take Profit Zone: 1.1215 – 1.1265
- Stop Loss Level: 1.0325
Should price action for the AUDNZD breakdown below 1.0425 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0400
- Take Profit Zone: 1.0000 – 1.0100
- Stop Loss Level: 1.0500
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