Source: PaxForex Premium Analytics Portal, Fundamental Insight
New Zealand NZIER Business Confidence for the first quarter came in at -25%. Forex traders can compare this to New Zealand NZIER Business Confidence for the fourth quarter, reported at -2%. New Zealand NZIER QSBO Capacity Utilization for the first quarter came in at 90.2%. Forex traders can compare this to New Zealand NZIER QSBO Capacity Utilization for the fourth quarter, reported at 91.4%.
Australian Westpac Consumer Confidence for April decreased 2.4% monthly at 82.4. Forex traders can compare this to Australian Westpac Consumer Confidence for March, which contracted by 1.8% monthly to 84.4.
Australian NAB Business Conditions for March came in at 9, and Australian NAB Business Confidence at 1. Forex traders can compare this to NAB Business Conditions for February, reported at 10, and Australian NAB Business Confidence at 0.
Chinese New Yuan Loans for March are predicted at CNY 3,700.0B and Chinese Total Social Financing at CNY 4,700.0B. Forex traders can compare this to Chinese New Yuan Loans for February, reported at CNY 1,450.0B, and Chinese Total Social Financing at CNY 1,560.0B. Chinese M2 Money Supply for March is predicted to increase by 8.7% and Outstanding Loan Growth by 9.9%. Forex traders can compare this to the Chinese M2 Money Supply for February, which rose by 8.7%, and Outstanding Loan Growth by 10.1%.
Today’s trading session lacks market-moving data, with two minor reports from the US likely to gather additional attention. It could lead to increased volatility in lower volume.
The forecast for the AUD/NZD has turned bearish after this currency pair lost bullish momentum at its horizontal resistance area. The Kijun-sen and Tenkan-sen continue to move higher but show signs of entering a sideways trend, confirming the potential end of bullishness. The Ichimoku Kinko Hyo Cloud is narrow and moves higher, but traders should watch for signs of a reversal due to the proximity of the Senkou Span A and Senkou Span B following a bullish crossover. Traders should also monitor the CCI after a negative divergence formed in extreme overbought territory, which led to a breakdown below 100. This technical indicator has plenty of downside potential, and a move below zero could accelerate the pending medium-term correction. Can bears overpower bulls and regain complete control over the AUD/NZD to force price action into its horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the AUD/NZD remain inside the or breakdown below the 1.0920 to 1.0955 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0935
- Take Profit Zone: 1.0760 – 1.0810
- Stop Loss Level: 1.0980
Should price action for the AUD/NZD breakout above 1.0955, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0980
- Take Profit Zone: 1.1050 – 1.1085
- Stop Loss Level: 1.0955
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