AUDNZD Idea

This is a straight Technical trade. New Zealand fundamentally is strong than Australia at the moment, However to political uncertainty their currency has come under pressure due to the suspension of foreign investment in their real estate market. Please see fundamental number below.



GDP GDP YoY GDP QoQ Interest rate Inflation rate Jobless rate Gov. Budget Debt/GDP Current Account Currency Population
Australia
1205 1.80% 0.80% 1.50% 1.80% 5.50% -2.40% 41.10% -2.70 0.77 24.13
New Zealand
185 2.50% 0.80% 1.75% 1.90% 4.60% 0.70% 24.60% -2.70 0.69 4.75

Looking at the weekly chart you will Major Band of Support @1.10465 and Major Band of Resistance @ 1.12. The major reason im taking this trade is because of the Dollar Bullishness, Why becuase NZD will lose more value againts the dollar than the Australian Dollar against US Dollar. Moreover, Is a great RISK REWARD TRADE 1:3. We will be risking 41 pips vs 126 pips Min/ 156 pips max. Please don't Risk more than 2% of your Initial Capital. Personal I only Risk 1.5% of my capital per single trade. Example Initial Capital 10K Max Risk 1.5% =150$. In this Case you might Lose 150$ vs 450 min Reward/ 570$ Max Reward.