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.
