The China’s currency devaluation directly affects the AUD & NZD. The risk appetite factor is one more driving force.
Today the Westpac consumer confidence and wage price index coincides with the Asian session. Consumer confidence has posted a surprisingly strong rise in August.
The Westpac Melbourne Institute index of consumer sentiment jumped to 99.5 in the first full week of August from 92.2 in July.
Technical view: After the release of Australia’s reports, the cross is edging higher to retest the earlier high. At present at the Asian session, the cross made a high at 1.5290. The earlier high seems at 1.5337 which is a December 17, 2014 high. The cross has been forming lower highs and lower lows from January 2014 highs. If the cross can close above 1.5337 on a weekly basis, the first higher high is likely to be achieved. In this case, bulls aim at 1.5700, the previous high seems at 1.5831 which was hit in 2014.
The material has been provided by InstaForex Company – www.instaforex.com