EURUSD rose on Wednesday morning in the European market and recorded its first daily gain…
AUD/NZD Bearish Pressure Likely to Fade If Australian Private Sector Credit Expands
New Zealand – ANZ Business Confidence
On Thursday, at GMT 1:00 a.m., the Australia and New Zealand (ANZ) bank will release its business outlook report. It measures the business confidence in the New Zealand in terms of the level of a diffusion index by surveying around 1,500 businesses in the country.
The survey includes various manufacturers, builders, retailers, agricultural firms, and service providers. Hence, binary options investors consider this index to be a leading indicator of the economic health of the country.
Last month, the ANZ business confidence index came out at -13.2. If the negative reading continues this month, it will likely have a bearish effect on the New Zealand Dollar.
Australia – Private Sector Credit
On Friday, at GMT 12:30 a.m., the Reserve Bank of Australia will release the month-over-month Private Sector Credit data. It measures the changes in the total value of new credit issued to consumers and corporations in the country over the previous month.
Binary options traders consider the private sector credit to be an important fundamental indicator of the Australian economy. Because borrowing and spending are highly correlated. Consumers and businesses only take out credit when they feel confident about their ability to pay it back in the future. Hence, it also acts as a measure of consumer and business confidence.
Last month, the private sector credit in Australia increased by 0.2%. The forecast for this month is currently set at an increase of 0.2% as well.
On February 5, 2020, the AUD/NZD broke above the resistance around 1.0400. However, over the last two weeks, it remained mostly range bound. Earlier today, the AUD/NZD tested the next resistance at 1.0460. But, failed to penetrate above it. Currently, it is once again approaching the support near 1.0400.
The Australian Private Sector Credit will likely grow by another 0.2% this month. On the other hand, the ANZ Business Confidence in New Zealand will likely remain negative. We believe it would set a bullish fundamental outlook for the AUD/NZD this week. Therefore, if the AUD/NZD closes above the resistance near 1.0460, it would likely attract additional bullish momentum in the market.
Hence, Australian binary options traders should look out for trading opportunities above this major resistance level around 1.0460.
Market Analyst / Trading Consultant . Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes about various tech and financial topics. You can reach him at email@example.com