The AUD and NZD March Higher Despite Mixed Data

It’s been a busy morning of data out of Australia and New Zealand, but overall we are seeing some positive sentiment.

The AUD/USD is surging this morning and has ironically has shaken off the major data point of the day in Asian which was Chinese manufacturing PMI. That number came in below expectations but it seems there is too much positive news elsewhere to ignore.

At the same time, the NZD/USD is really outperforming in the Asian session.

The news that business confidence came in higher was good, but the number was still poor if you look at it in context.

While for the Aussie, building permits did improve, which has been a concern of recent times.

All that said, it looks like the news that the FOMC is slowing its rate cuts going forward has really done wonders in Asian trade. Add that to the fact there is progress being made with the US-China talks and there is a good case for the risk-on trade at the moment.

There is also a technical aspect here. The Aussie has broken out above 0.6900 and that seems to be helping with some more bids coming in.

While at the same time, the Kiwi has reclaimed 0.6400. However, it looks like there will be more resistance at 0.6440.

With that being the case, it could be worth being long for a move into that area in the NZD/USD. We could then use it as a take profit area.

That would be my number one trade so far today. The Aussie bounce I feel will struggle, but we need to watch the price action on any pullback to that key level of 0.6900. If the bids come and it holds, then the door is open for a push to 0.7000.

NZD/USD
NZD/USD – 240min.
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Rowan Crosby
Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments