Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand CPI for the first quarter increased by 0.8% quarterly and by 1.5% annualized. Economists predicted an increase of 0.7% and 1.4%. Forex traders can compare this to the New Zealand CPI for the fourth quarter, which increased by 0.5% quarterly and by 1.4% annualized.
The Australian Westpac Leading Index for March increased by 0.4% monthly. Forex traders can compare this to the Australian Westpac Leading Index for February, which increased by 0.2%. Australian Retail Sales for March increased by 1.4% monthly. Economists predicted an increase of 1.0% monthly. Forex traders can compare this to Australian Retail Sales for February, which decreased by 0.8% monthly.
The forecast for the AUD/NZD turned bullish after price action corrected into its Ichimoku Kinko Hyo Cloud, which continues to move higher. Renewed global economic concerns about the Covid-19 pandemic add a minor bullish development for this currency pair amid a more diversified Australian economy over New Zealand. The descending Kijun-sen crossed below the upward drifting Kijun-sen, suggesting volatility may increase. After the CCI plunged into extreme oversold territory, traders should expect an advance. Will bulls rally and force the AUD/NZD back into its horizontal resistance 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 breakout above the 1.0715 to 1.0780 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0750
- Take Profit Zone: 1.0910 – 1.0945
- Stop Loss Level: 1.0685
Should price action for the AUD/NZD breakdown below 1.0715, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0685
- Take Profit Zone: 1.0400 – 1.0420
- Stop Loss Level: 1.0715
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
