AUDNZD Support Analysis
After 4 months, AUDNZD has reached the Support Zone in the Daily timeframe chart.
The retracement is expected from this support zone.
In the 4-hour time frame chart, AUDNZD is bouncing back from the lower low zone.
Chinese robust economic recovery from Feb 2020 is favourable for the Australian dollar. Caixin manufacturing services and composite PMI prints are better than expectations. Industrial production increased by 6.9% and climbing to most of December 2019.
Overall data shows china is fully recovered from Covid-19 pandemic economy, the stimulus of trillion of yuan spent by China is the only reason for recovery. This results Australian dollar soared to high in previous weeks.
China says Australia has not righted to interfere with china internal relations with Taiwan, Hong Kong and South china sea matters. Hence Chinese authorities do tit for tat tax on Australian exports.
The regional comprehensive economic partnership held on Sunday and this reduces the tax and implements new regulations. The historic free agreement will give successful repairing between Sino-Australian relations.
RBA Governor Philip Lowe said Negative rates are not possible on the table. But if negative rates implemented that will cause weakness for the Australian dollar.
We implement negative rates once all other developed central banks will reduce their rates to negative territory. Australia is picking up fast in economic recovery and not much worse than expected.
New Zealand PM Ardern announced on Monday mandatory masks order on all flights and Auckland’s Public transport, The new rules will effective from this week Thursday. Encouraging people of wearing masks and social distancing leads to control pandemic soon.
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