AUD/NZD lacking direction in early Tokyo trading, NZ inflation expectations on the docket
- AUD/NZD starts the day with a whip.
- Lagging confidence in both economies beginning to take their toll.
- NZ business inflation expectations at 02:00 GMT.
AUD/NZD started off the overnight session with a brief spike lower, but has normalized and begun to push into the 1.0810 area in Tokyo trading.
The Aussie declined slightly to start the Asia markets as a Westpac consumer confidence survey showed a decline in household confidence in economic expectations going forward for Australia; Westpac chalked this up to extensive media covered of declines in the Australian stock market as well as the US S&P 500 index. Traders shook off the survey results quickly and faded the move back to the New York closing price.
Today at 02:00 GMT, New Zealand releases their Inflation Expectations results for the 4th quarter 2017. Business managers surveyed are asked to estimate CPI expectations for the next two years, and an uptick in data will represent growing confidence in the New Zealand economy going forward. With economic growth lagging in NZ to match Australia’s mixed growth performance, a large increase in confidence is unlikely.
Intraday support/resistance can be found at 1.0772 and 1.0836 respectively, and prospects are mixed for the exotic pair. With AUD/NZD caught in a rough consolidation pattern between support at 1.0756 declining highs from 1.0875, bearish pressure is growing as the pair continues to trade just below the 200-day SMA.