The AUD/USD pair jumped up today after the release of Australia’s New Home Sales and Private Capital Expenditure Data. April’s New Home Sales was up by 2.9 per cent over the previous month, and was better than the 0.2 per cent improvement in March. Meanwhile, the Private CapEx provided an inflationary outlook on the economy, when it came out at -4.2 per cent in Q1, instead of the expected -4.5 per cent.
The pair opened the Asian session at 0.9223, before making a sharp jump at 0.9259 when the Australian data were released. It is so far going on an uptrend as it is currently trading at 0.9272, with initial resistance seen at 0.9254, followed by 0.9278. Meanwhile, initial support is at 0.9196, followed by 0.9173.
After peaking near the 0.8800 area earlier this month, the NZD/USD has went on a steady decline as May progressed. The trend continued yesterday, as the pair fell sharply again just prior to the opening of the European session. The main reason for this is the expectation that the Reserve Bank of New Zealand (RBNZ) will start raising rates this year, with at least three increases seen before 2014 ends. Another reason is RBNZ Governor Wheeler’s warning that the bank is willing to intervene with the currency if it stays high “in face of worsening fundamentals.” These and other reasons are taken as signals for traders to start selling off the NZD.
So far today, however, the NZD/USD pair has remained fairly flat, trading within a narrow range between 0.8480 and 0.8500. It is currently trading at 0.8493, with initial resistance seen at 0.8533, followed by 0.8555. Meanwhile, initial support is at 0.8431, followed by 0.8409.
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