Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian AiG Construction Index for July came in at 45.3. Forex traders can compare this to the Australian AiG Construction Index for June, reported at 46.2.
The Final Australian Markit Services PMI for July came in at 50.9, and the Final Australian Markit Composite PMI at 51.1. Forex traders can compare this to the Australian Markit Services PMI for June, reported at 52.6, and the Final Australian Markit Composite PMI at 52.6.
Australian Retail Sales for June increased 0.2% monthly. Economists predicted a rise of 0.2% monthly. Forex traders can compare this to Australian Retail Sales for May, which rose 0.9% monthly. Australian Retail Sales excluding Inflation for the second quarter expanded 1.4% quarterly. Economists predicted an increase of 1.2% quarterly. Forex traders can compare this to Australian Retail Sales excluding Inflation for the first quarter, which rose 1.0% quarterly.
The New Zealand Unemployment Rate for the second quarter came in at 3.3%. Economists predicted an Unemployment Rate of 3.1%. Forex traders can compare this to the Unemployment Rate for the first quarter, reported at 3.2%. The Employment Change for the second quarter came in at 0.0%. Economists predicted a rise of 0.4%. Forex traders can compare this to the Employment Change for the first quarter, which was flat at 0.0% quarterly. The Participation Rate for the second quarter was 70.8%. Economists predicted a Participation Rate of 71.0%. Forex traders can compare this to the Participation Rate for the first quarter, reported at 70.9%. The Labor Cost Index for the second quarter increased 1.3% quarterly and 3.4% annualized. Economists predicted a rise of 1.1% and 3.3%. Forex traders can compare this to the Labor Cost Index for the first quarter, which expanded 0.7% quarterly and 3.1% annualized.
The New Zealand ANZ Commodity Price Index for July dropped 2.2% monthly. Forex traders can compare this to the New Zealand ANZ Commodity Price Index for June, which decreased 0.4% monthly.
The Chinese Caixin Services PMI for July came in at 55.5, and the Chinese Caixin Composite PMI at 54.0. Forex traders can compare this to the Chinese Caixin Composite PMI for June, reported at 54.5, and the Chinese Caixin Composite PMI at 55.3. The Hong Kong Manufacturing PMI for July came in at 52.3. Forex traders can compare this to the Hong Kong Manufacturing PMI for June, reported at 52.4.
The forecast for the AUD/NZD remains bearish after this currency pair corrected over the past five trading sessions. Price action found temporary supports at its Ichimoku Kinko Hyo Cloud, which took on a bearish stance following the crossover of the Senkou Span A below the Senkou Span B. Confirming the absence of bullishness are the Kijun-sen and the Tenkan-sen, which both flatlined. The CCI completed a breakdown from extreme overbought territory and moved below zero, but it has plenty of downside potential. Can bears continue to force the AUD/NZD towards 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 1.1040 to 1.1130 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.1075
- Take Profit Zone: 1.0730 – 1.0795
- Stop Loss Level: 1.1185
Should price action for the AUD/NZD breakout above 1.1130, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.1185
- Take Profit Zone: 1.1230– 1.1290
- Stop Loss Level: 1.1130
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
