Can AUD/USD and NZD/USD Resume Uptrend After the Retrace Lower?
Skerdian Meta • 2 min read
Commodity currencies AUD and NZD are trading in the red yesterday as the week stated, with forex traders focusing completely on the Fed’s upcoming rate hikes and buying into the USD. At the time of writing, AUD/USD is trading at around $0.75.
For the week, the commodity currency has lost around 0.9% of its value against the greenback, driven lower initially by a risk-off mood in global financial markets yesterday, owing to geopolitical tensions. The bearish moves in AUD/USD were further bolstered by China’s lockdown of the Shanghai province, which had a negative impact on all risk assets, such as crude Oil as well.
AUD/USD Daily Chart – The Pullback Seems Weak
The bullish trend has picked up pace for the Aussie
My colleague Arlan decided to open a sell signal on this pair earlier, while I already had a NXD/USD sell forex trade. The Australian retail sales report for February came out quite positive, as the country reopened from the coronavirus restrictions.
Australian Retail Sales for February
- February retail sales come at +1.8% MoM bs1.0% expected 1.0%
- January sales were 1.8%
- February sales YoY came at +6.7%
NZD/USD Daily Chart – The Retrace Seems Complete
NZD/USD starting to reverse above the 100 SMA
NZD/USD has been bearish since late January and after the retreat on the H4 chart above, we decided to go long on this pair. Now the decline has stopped and it seems like the price is about to reverse higher, so this trade looks good at the moment.