Here technical analysis of AUD/NZD will be inserted.
As you can see the AUD/NZD is still trading inside a bearish long term Fibonacci fan. After it failed to cross the resistance level around 1.1746 and to enter the upper channel, it continued to decline. According to the Moving Average further losses below the close support level are possible although the Stochastic assumes the exact opposite.
New Zealand`s Treasury said today that every 1% in the Chinese gross domestic product correlates to an increase in New Zealand`s GDP of 0.2% to 0.4%. The report stated that estimated growth spillovers are mainly greater from the United States economy than from the Chinese economy, despite China`s increasing importance in the global economy.
Today`s report said that China`s impact on global commodity prices has been increasing over time, and growth in China has a very strong effect on aluminum and dairy price inflation.
Yet, today`s report was relying on data in the ten years ending 2011; however, there are recent indicators including China`s demand for New Zealand`s dairy products, are indicating the increasing role of China in the near future. Improvements in the Chinese economy became more important for New Zealand, and China`s monetary policy makers` decisions can somehow affect New Zealand GDP.
As you can see, the AUD/NZD is still trading inside a bearish long term Fibonacci fan as well as a sideways movement mostly between the resistance level around 1.1732 and the support level around 1.1655. After it had failed to cross the resistance level around 1.1981, the rate dropped below the bearish fan before entering the fan again. It continued to decline. According to the OsMA and the Stochastic further losses below the close support level are possible.