Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian TD Securities Inflation for August increased by 0.1% monthly. Forex traders can compare this to Australian TD Securities Inflation for July, which increased by 0.9% monthly. Australian Inventories for the second quarter decreased by 3.0% quarterly, and Australian Company Operating Profits increased by 15.0% quarterly. Economists predicted a decrease of 1.0% and 7.5%. Forex traders can compare this to Australian Inventories for the first quarter, which decreased by 1.2% quarterly and to Australian Company Operating Profits, which increased by 1.1% quarterly. Company Pre-Tax Profits for the second quarter increased by 6.3% quarterly. Forex traders can compare this to Company Pre-Tax Profits for the first quarter, which decreased by 16.2% quarterly.
Australian Private Sector Credit for July decreased by 0.1% monthly and increased by 2.4% annualized. Forex traders can compare this to Australian Private Sector Credit for June, which decreased by 0.2% monthly, and which increased by 2.9% annualized. The New Zealand ANZ Activity Outlook for August decreased by 17.5%, and ANZ Business Confidence was reported at -41.8. Forex traders can compare this to the New Zealand ANZ Activity Outlook for July, which decreased by 8.9%, and to ANZ Business Confidence, reported at -31.8.
The forecast for the AUD/NZD turned decisively more bearish after today’s economic data. Australian private sector credit remains weak, suggesting potentially disappointing retail sales data. Chinese August manufacturing slowed down but is above the 50.0 level, indicating expansion. Domestic demand in Australia is likely to remain weak in the third quarter. Price action is positioned between its flatlining Kijun-sen and its descending Tenkan-sen. A sell-off into the base of the Ichimoku Kinko Hyo Cloud can be expected. Will bears pressure this currency pair 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 1.0900 to 1.0965 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0920
- Take Profit Zone: 1.0690 – 1.0725
- Stop Loss Level: 1.1000
Should price action for the AUD/NZD breakout above 1.0965 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.1000
- Take Profit Zone: 1.1080 – 1.1100
- Stop Loss Level: 1.0965
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