Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand ANZ Activity Outlook for August rose by 11.2%, and ANZ Business Confidence came in at -3.7. Economists predicted an increase of 1.7% and a reading of -1.9. Forex traders can compare this to the New Zealand ANZ Activity Outlook for July, which rose by 0.8%, and to ANZ Business Confidence, reported at -13.1.
Australian Private Sector Credit for July increased by 0.3% monthly, and Housing Credit by 0.4% monthly. Economists predicted an increase of 0.3% and 0.3%. Forex traders can compare this to Australian Private Sector Credit for June, which rose by 0.3% monthly, and Housing Credit by 0.3% monthly.
Australian Private Capital Expenditure for the second quarter increased 2.8% quarterly. Economists predicted a rise of 1.2%. Forex traders can compare this to Australian Private Capital Expenditure for the first quarter, which accelerated 3.7% quarterly. Australian Building Capital Expenditure for the second quarter increased by 3.5% quarterly, and Australian Plant & Machinery Capital Expenditure by 1.9% quarterly. Economists predicted a decrease of 0.4% and a decrease of 0.1%. Forex traders can compare this to Australian Building Capital Expenditure for the first quarter, which expanded 1.3% quarterly, and Australian Plant & Machinery Capital Expenditure, which rose 4.2% quarterly.
The Chinese Non-Manufacturing PMI for August came in at 51.0, and the Chinese Manufacturing PMI at 49.7. Economists predicted a figure of 51.1 and 49.4. Forex traders can compare this to the Chinese Non-Manufacturing PMI for July, reported at 51.5, and the Chinese Manufacturing PMI, at 49.3. The Chinese Composite PMI for August came in at 51.3. Forex traders can compare this to the Chinese Composite PMI for July, reported at 51.1.
The forecast for the AUD/NZD has turned cautiously bearish after this currency pair advanced into its horizontal resistance area, which includes the flat Senkou Span B of its narrowing Ichimoku Kinko Hyo Cloud. Adding to the volatility, following a bearish crossover, is the descending Kijun-sen and the ascending Tenkan-sen. Traders should also monitor the CCI in extreme overbought territory, where it could record a lower high before reversing. A breakdown in this technical indicator below 100 could trigger the next leg lower, while a move below 0 would accelerate selling pressure. Can bears regain control over the AUD/NZD and pressure price action into its horizontal support area, challenging its July lows? 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 1.0860 to 1.0910 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0885
- Take Profit Zone: 1.0725 – 1.0755
- Stop Loss Level: 1.0925
Should price action for the AUD/NZD breakout above 1.0910, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0925
- Take Profit Zone: 1.0960– 1.1000
- Stop Loss Level: 1.0910
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
